British Steel Secures High-Profile Turkish Railway Deal Backed by UK Government Finance

Government-backed export support has helped British Steel land an eight-figure contract to supply rail for one of Turkey’s most significant infrastructure projects, the company has announced. The deal with ERG International Group will see 36,000 tonnes of rail produced at Scunthorpe and shipped to Turkey for the new 599km Ankara–İzmir high-speed railway.
UK Export Finance, the government’s trade finance arm, played a key role in enabling the agreement, reflecting the state’s dual position as both controller of British Steel and promoter of its international ambitions. The contract is seen as a validation of the quality and capability of British-made rail, which competes in a global market alongside products from Europe, Asia, and beyond.
The deal has had immediate practical consequences for the Scunthorpe workforce: 23 new jobs have been created, and the plant has restarted 24-hour production — a level of activity not seen there for more than a decade. For around 3,500 employees who have lived with significant uncertainty over the past year, the announcement is welcome news.
UK Steel’s director general praised the deal as central to British Steel’s long-term plan, noting that rail is a “strategically vital, high-value product” requiring advanced manufacturing capability and consistent quality. He called for the government to complement commercial wins with stronger structural support, including energy cost reductions and enhanced import safeguards.
Nevertheless, the financial headwinds facing British Steel remain formidable. Daily losses stand at £1.2 million, with the cumulative government bill now at £359 million. How long taxpayers will underwrite those losses — and what the end state looks like — remains one of the most pressing unanswered questions in UK industrial policy.