£35m rail contract boost for British Steel

British Steel says the contract will create new jobs at its Scunthorpe plant

The prime minister will announce a new £35m rail contract for British Steel, the government has said.

The deal, to supply products for Turkey's high-speed rail network, will be announced by Sir Keir Starmer at this weekend's G20 summit in Johannesburg.

British Steel's chief commercial officer Lisa Coulson said: "We're extremely grateful for the government's support and are confident our partnership with the operators will shortly secure additional orders and create new jobs in Scunthorpe."

The government said the new contract was part of more than £400m worth of export deals that would provide new opportunities for British companies.

The contract is in addition to a similar-sized agreement announced last year for a project in Southern Turkey, connecting Mersin with the cities of Adana, Osmaniye and Gaziantep.

Ms Coulson added: "We are proud to have already delivered £30m of our rail products into high-speed projects to help decarbonise travel in Turkey and are delighted to be building upon this with a new supply agreement.

"Securing these prestigious contracts, with the support of UK Export Finance, was a major achievement and underlines British Steel's ability to build the sustainable track systems of the future."

In April, the government took control of British Steel's plant in Scunthorpe to prevent it from closing.

The Steel Industry (Special Measures) Act was rushed through Parliament in a day, and allowed the government to direct the board and staff of British Steel.

The company has since secured a £500m deal to make train tracks for Network Rail.

Ahead of the G20 summit, the prime minister said: "The UK is a world leader in engineering, from steel welders in Scunthorpe to technicians in Derby, British workers are powering the world through their skill and profession.

"Working with international partners to deliver jobs and opportunity at home is a one-way ticket to growth."

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