British Steel has announced a major breakthrough — a contract worth tens of millions of pounds to supply rail to Turkey, which has directly triggered the restart of round-the-clock manufacturing at its Scunthorpe plant for the first time in more than ten years. The deal with ERG International Group covers 36,000 tonnes of rail for the new Ankara–İzmir high-speed line.
The resumption of 24-hour production is being seen as a milestone moment for the north Lincolnshire site, which has been mired in uncertainty since its Chinese owner, Jingye Group, announced plans to shut the steelworks last year. The government intervened with emergency legislation to take control, but has since faced mounting costs and difficult questions about the plant’s long-term viability.
Against that backdrop, the Turkish order provides a rare piece of good news. Twenty-three new jobs have been created, production lines are running continuously, and the plant is once again demonstrating what it can do when it has orders to fulfil. The Ankara–İzmir railway, at 599km, is one of Turkey’s largest infrastructure projects and is expected to significantly cut travel times while lowering emissions.
UK Export Finance provided backing for the deal, helping British Steel compete in a market where international rivals — often benefiting from lower energy costs and government subsidies — are formidable competitors. UK Steel called the contract “essential to underpinning a sustainable turnaround” and praised the plant’s capability in producing high-specification rail.
Yet the fundamental financial challenge remains. British Steel is costing the taxpayer £1.2 million a day, and the cumulative bill since the government takeover has now reached £359 million. Steel analysts continue to question how long this situation can continue, and what the ultimate resolution — whether new private ownership, nationalisation, or something else — will look like.