A year ago, British Steel was in the grip of a profound crisis. Its Chinese owner was threatening to close the Scunthorpe plant, the government was scrambling to pass emergency legislation to take control, and analysts were asking whether British steel production had any future at all. Today, the plant has just won a major contract to supply rail for one of Turkey’s most ambitious railway projects. It is, by any measure, an unlikely turnaround — even if the story is far from over.
The eight-figure deal with ERG International Group covers 36,000 tonnes of rail for the 599km Ankara–İzmir high-speed line, which will connect Turkey’s capital with the Aegean coast while cutting travel times and carbon emissions. Supported by UK Export Finance, the contract has created 23 new jobs and restarted 24-hour production at Scunthorpe for the first time in over a decade.
UK Steel has praised the deal as “essential to underpinning a sustainable turnaround” and called on the government to complement commercial wins with structural reforms on energy costs and import protections. The director general was emphatic that individual contracts, however significant, must be accompanied by policy action to address the sector’s underlying challenges.
The financial picture remains challenging. British Steel is losing £1.2 million a day, with total government costs since the emergency takeover reaching £359 million. The question of long-term ownership and investment has not been resolved. Jingye Group’s departure, the government’s emergency intervention, and the ongoing losses have left British Steel in a precarious but not hopeless position.
From crisis to contract: it is a remarkable journey for a plant that many had written off. Whether the destination is genuine sustainability or just a temporary reprieve remains to be seen — but for now, British Steel has a Turkish railway to supply, and that is reason enough for optimism.