British Steel secures Turkey high-speed rail boost

Published: 18 February 2026. The English Chronicle Desk. The English Chronicle Online.

A major overseas contract has delivered a fresh sense of momentum for British Steel, as the Scunthorpe-based manufacturer confirmed a substantial order linked to the Ankara–Izmir high-speed line. The agreement, described as an eight-figure deal, will see 36,000 tonnes of rail produced in North Lincolnshire and shipped to Turkey over the coming months. For a business that has faced mounting losses and political uncertainty, the development marks a rare moment of optimism.

The rail will be supplied to ERG International Group and used on a 599-kilometre electric railway connecting the Turkish capital of Ankara with the western port city of İzmir. Once completed, the line is expected to cut journey times significantly and lower carbon emissions by encouraging passengers away from road and air travel. The scale of the infrastructure project reflects Turkey’s long-term transport ambitions and underlines the global demand for high-specification rail products.

At the heart of the contract stands British Steel, whose Scunthorpe works have been under government control since emergency legislation was passed last year. The plant employs around 3,500 people and remains one of the last sites in the UK capable of turning iron ore into long steel products used in railways, bridges and major construction schemes. Securing the Turkish order has enabled the company to create 23 new roles and restart continuous rail manufacturing for the first time in more than a decade.

Executives have described the agreement as a commercial breakthrough during a period of intense financial pressure for British Steel. According to figures disclosed to Parliament, daily losses at the site have widened to £1.2 million, pushing the overall public cost to £359 million. The deal has been supported by UK Export Finance, providing crucial backing at a time when confidence in the long-term future of British Steel remains fragile.

The journey to this point has been turbulent for British Steel and its workforce. In 2016, the business was acquired by private equity firm Greybull Capital. Three years later it collapsed into insolvency, casting doubt over the future of thousands of skilled jobs. It was subsequently purchased out of receivership in early 2020 by China’s Jingye Group, which pledged investment and stability. However, by last year Jingye announced plans to close the Scunthorpe works amid reported losses of £700,000 per day.

After negotiations over state support broke down, the UK government intervened with emergency legislation to assume control of the plant. Ministers argued that preserving domestic steelmaking capacity was a matter of economic security and industrial strategy. Critics questioned whether public funds should be used to sustain a business operating at such heavy losses. Against this backdrop, the Turkish rail order carries both economic and symbolic weight for British Steel.

Industry analysts suggest that rail production is one of the most strategically important segments for the UK steel sector. Unlike more commoditised steel grades, rail requires advanced manufacturing capability, strict quality control and enduring customer relationships. Gareth Stace, director general of industry body UK Steel, said agreements of this scale are essential to underpinning a sustainable turnaround. He described rail as a high-value product central to the long-term future of British Steel and the wider sector.

Stace also warned that contracts alone cannot resolve the structural pressures facing UK producers. Energy costs in Britain remain significantly higher than in many competitor nations, placing domestic manufacturers at a disadvantage. Import safeguards have also been a point of contention, as cheaper overseas steel has entered the UK market. He urged the government to ensure that policy measures align with the ambition to rebuild industrial resilience.

For workers in Scunthorpe, the immediate impact of the order is tangible. The restart of round-the-clock rail manufacturing represents a return to a production rhythm not seen in more than ten years. Local representatives say the additional jobs, though modest in number, offer reassurance to families worried about redundancy. The town’s economic identity is closely tied to steelmaking, and uncertainty over the plant has weighed heavily on the community, where the future of British Steel remains a defining concern.

The Ankara–Izmir project itself is one of Turkey’s most ambitious transport undertakings. By linking the political centre of the country with a key Aegean port, the railway aims to boost regional trade and tourism. High-speed electric trains are expected to provide faster, cleaner connections between major cities. For British Steel, participation in such a flagship scheme enhances its international profile at a critical time.

Market observers note that export success has long been a cornerstone of the company’s strategy. The Scunthorpe works has supplied rail to projects across Europe, Asia and the Americas. Maintaining those global relationships is vital if the business is to move beyond reliance on government support. The Turkish contract demonstrates that international customers continue to regard the manufacturer as a trusted supplier of specialised rail products.

Nevertheless, questions remain about sustainability. UK steel production has fallen to its lowest level in more than a century, reflecting a combination of high costs, global overcapacity and shifting demand patterns. The transition to greener forms of steelmaking, including electric arc furnaces, requires significant investment. Policymakers face difficult choices over how much public funding should be committed to preserve traditional blast furnace operations.

The government has maintained that any long-term solution must balance fiscal responsibility with industrial strategy. Officials have indicated that discussions are ongoing regarding the plant’s future structure and potential private sector partnerships. While the Turkish deal offers breathing space, it does not by itself resolve deeper financial challenges.

Economic commentators argue that the contract’s true significance lies in the signal it sends. At a moment when scepticism about heavy industry runs high, securing a major international order reinforces the argument that advanced steelmaking retains value. It also highlights the interconnected nature of global infrastructure development, where British engineering expertise contributes to projects far beyond national borders.

For now, production lines in Scunthorpe are preparing to meet delivery schedules. Steel billets will be rolled, heat-treated and quality tested before shipment overseas. The sight of renewed activity has lifted morale on the shop floor, even as broader uncertainties persist. Workers understand that sustained recovery will depend on a pipeline of similar agreements.

As the trains that will eventually run between Ankara and İzmir move closer to reality, the rails beneath them will carry a British imprint. Whether this moment marks the beginning of a genuine turnaround remains to be seen. What is clear is that the Turkish high-speed project has provided a timely boost at a pivotal chapter in the company’s long history.

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