British Steel has secured a major German rail contract after investing £1 million into its Scunthorpe Rail and Section Mill.
The deal will see the company deliver around 20,000 tonnes of 120 metre rail a year to Deutsche Bahn, Europe’s largest purchaser of rail.
As well as the Deutsche Bahn agreement, the new 120 metre rail capability at the mill allows improved competiveness for British Steel in the wider European market.
British Steel supplies rail across the globe from its rolling mills in Scunthorpe and Hayange.
The initial contract with Deutsche Bahn is for 21 months and will see the new 120 metre length rails delivered to Germany through the Channel Tunnel.
The first shipment is due this month.
Peter Smith, British Steel Managing Director Rail, said: “Deutsche Bahn is by far the biggest purchaser of rail in Europe. Having a stake in the German market is strategically important to us and we hope to build a strong and lasting relationship with them.
“The investment allows us to remain at the forefront of rail production and act as a catalyst for further long-length rail exports into Europe.”