British Steel’s Comeback Bid Gets a Turkish Boost — But Long-Term Questions Linger

by admin477351

British Steel is attempting one of British industry’s most challenging comebacks, and a new contract to supply rail to Turkey has given that effort a meaningful boost. The eight-figure deal with ERG International Group — covering 36,000 tonnes of rail for the 599km Ankara–İzmir high-speed railway — is the kind of commercial win that the plant’s supporters say proves it is worth fighting for.

The contract, supported by UK Export Finance, has already had a tangible impact at Scunthorpe: 23 new jobs and the return of 24-hour production after more than ten years. These are not trivial developments for a plant that has been in crisis mode for much of the past two years, and they provide welcome evidence that the site can still attract significant international business.

Turkey’s Ankara–İzmir railway is a flagship project — 599km of electric track designed to cut travel times and carbon emissions across one of the country’s most important transport corridors. British Steel’s involvement places it at the centre of some of the most forward-looking infrastructure development happening anywhere in the world.

UK Steel has praised the deal and warned that structural reforms are urgently needed alongside commercial wins. The director general called for energy cost support and stronger import safeguards, noting that “contracts alone cannot address the structural pressures facing the sector.” This is a point that British Steel’s management would likely agree with.

The fundamental challenge — daily losses of £1.2 million and a total government bill of £359 million — has not gone away. British Steel’s comeback bid is real, and the Turkish deal gives it credibility. But the plant still needs a comprehensive plan — one that goes well beyond individual contracts — if it is to emerge from this crisis with a genuinely sustainable future.

You may also like