Network Rail has agreed a five-year deal which will see Tata Steel’s site in Scunthorpe manufacturer 95 per cent of Britain’s new rails.
Tata Steel will supply around 140,000 tonnes of rail each year under the agreement, which also includes suppliers ArcelorMittal and VoestAlpine.
The framework contract, which features an option to extend for a further five years, will include orders for CEN60 and CEN 56 rail types, conductor rail and old-style bullhead, Network Rail has said.
Patrick Butcher, Network Rail’s group finance director, said:
“We are renewing and enhancing more and more of Britain’s railway over the next five years and it’s crucial that we have a trusted and secure supply chain to help us achieve that safely and efficiently.”
Throughout control period 5, Network Rail is scheduled to complete £10 billion of core renewals and £10 billion of enhancements.
Henrik Adam, chief commercial officer of Tata Steel, said: “This is fantastic news. I am delighted the rail network in Britain will continue to be made and maintained with our UK rail.”