British Steel Secures Major Turkish Rail Contract, Reviving Scunthorpe Operations
Published 17 February 2026
Highlights
- British Steel has secured a major contract with Turkey to supply rail for a 599km high-speed railway between Ankara and Izmir.
- The contract, valued at tens of millions of pounds, has enabled British Steel to restart 24/7 rail manufacturing operations in Scunthorpe.
- The deal is seen as a commercial boost for British Steel amid ongoing financial challenges and government control of the Scunthorpe plant.
- The UK government intervened to prevent the closure of the Scunthorpe steelworks, which faces daily losses of £1.2 million.
- Industry experts emphasize the importance of such contracts for the long-term sustainability of the UK steel industry.
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Rewritten Article
British Steel Secures Major Turkish Rail Contract, Reviving Scunthorpe Operations
British Steel has announced a significant contract win to supply rail for a high-speed electric railway in Turkey, marking a pivotal moment for the company and its operations in Scunthorpe. The contract, valued at tens of millions of pounds, involves the delivery of 36,000 tonnes of rail for a 599km line connecting Ankara and Izmir. This development has prompted British Steel to resume round-the-clock rail manufacturing for the first time in over a decade.
A Boost Amid Challenges
The contract with Turkey's ERG International Group is seen as a crucial commercial boost for British Steel, which has faced financial difficulties and government intervention to prevent the closure of its Scunthorpe plant. The UK government took control of the plant in April, following the company's insolvency and subsequent acquisition by China's Jingye Group in 2020. Despite these challenges, British Steel's chief commercial officer, Lisa Coulson, expressed optimism, stating, "Securing this prestigious contract underlines our ability to build sustainable track systems for the future."
Economic and Environmental Impact
The new railway line is expected to significantly reduce travel times and carbon emissions, aligning with global efforts to promote sustainable transportation. Craig Harvey, British Steel's commercial director for rail, highlighted the contract's role in revitalizing operations, saying, "This contract has been the catalyst to us starting 24/7 rail manufacturing operations in Scunthorpe."
Industry Perspectives
Gareth Stace, director general at UK Steel, emphasized the strategic importance of such contracts, noting, "Rail is a strategically vital, high-value product and central to British Steel’s long-term plan." He called for government support to address structural pressures in the UK steel industry, including energy costs and import safeguards.
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Scenario Analysis
The successful execution of the Turkish rail contract could pave the way for British Steel to secure additional international deals, bolstering its financial stability. However, the company's long-term viability remains uncertain, with ongoing daily losses at the Scunthorpe plant. The UK government's continued support will be crucial in navigating these challenges, as industry experts call for measures to enhance competitiveness and sustainability in the UK steel sector. As British Steel looks to the future, its ability to adapt and innovate will be key to maintaining its position in the global market.
British Steel has announced a significant contract win to supply rail for a high-speed electric railway in Turkey, marking a pivotal moment for the company and its operations in Scunthorpe. The contract, valued at tens of millions of pounds, involves the delivery of 36,000 tonnes of rail for a 599km line connecting Ankara and Izmir. This development has prompted British Steel to resume round-the-clock rail manufacturing for the first time in over a decade.
A Boost Amid Challenges
The contract with Turkey's ERG International Group is seen as a crucial commercial boost for British Steel, which has faced financial difficulties and government intervention to prevent the closure of its Scunthorpe plant. The UK government took control of the plant in April, following the company's insolvency and subsequent acquisition by China's Jingye Group in 2020. Despite these challenges, British Steel's chief commercial officer, Lisa Coulson, expressed optimism, stating, "Securing this prestigious contract underlines our ability to build sustainable track systems for the future."
Economic and Environmental Impact
The new railway line is expected to significantly reduce travel times and carbon emissions, aligning with global efforts to promote sustainable transportation. Craig Harvey, British Steel's commercial director for rail, highlighted the contract's role in revitalizing operations, saying, "This contract has been the catalyst to us starting 24/7 rail manufacturing operations in Scunthorpe."
Industry Perspectives
Gareth Stace, director general at UK Steel, emphasized the strategic importance of such contracts, noting, "Rail is a strategically vital, high-value product and central to British Steel’s long-term plan." He called for government support to address structural pressures in the UK steel industry, including energy costs and import safeguards.
What this might mean
The successful execution of the Turkish rail contract could pave the way for British Steel to secure additional international deals, bolstering its financial stability. However, the company's long-term viability remains uncertain, with ongoing daily losses at the Scunthorpe plant. The UK government's continued support will be crucial in navigating these challenges, as industry experts call for measures to enhance competitiveness and sustainability in the UK steel sector. As British Steel looks to the future, its ability to adapt and innovate will be key to maintaining its position in the global market.
