Boost for British Steel as firm wins huge rail contract in Africa
British Steel has won a contract to send 20,000 tonnes of rail sleepers to Guinea in a major boost to the industry.
The Scunthorpe-based manufacturer will export 244,000 steel sleepers to the West African nation.
British Steel’s export sales manager for rail, Jérôme Bonef, said: “This is fantastic news for our business, particularly given the high level of competition we faced to secure this contract.
“Our steel sleepers provide the perfect technical solution to the challenges facing rail operators in this region and we’re proud to have been chosen to support such a major project.”
The sleepers, which are 100% recyclable, will be used to upgrade the freight railway line at a bauxite mine in mineral-rich Guinea.
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Hundreds of workers are still set to lose their jobs at Scunthorpe (AFP via Getty Images)Steel sleepers are stronger and more durable than wooden versions which have traditionally been used in Africa.
The order is a boost for British Steel, which is owned by Chinese giant Jingye.
The firm last month announced plans to axe 260 jobs and close its coking ovens at its plant at Scunthorpe, Lincs, as it bids to cut costs.
British Steel’s future was first thrown into turmoil in early 2020 when its investment fund owners Greybull Capital decided to pull out.
It had bought the firm for a token pound in 2016 and revived the famous name.
Buying the company in March 2020 for a reported £50million, Far East giant Jingye Group vowed to modernise operations in Scunthorpe and Teesside as part of the deal.
But the latest job cuts plan piled pressure on the Government to throw the industry a lifeline as warnings mount about its future.
The Tories have faced repeated calls to bolster the sector, which is being hammered by cheap imports and high-energy costs.
Privately, some executives fear the Conservatives are resigned to “managed decline” of the once-thriving industry.
British Steel's operation at ScunthorpeIn January, Liberty Steel plunged 440 jobs into jeopardy, with up to 185 posts under threat at Rotherham, South Yorks; 121 at Newport, 99 at West Bromwich and 35 in Tredegar, South Wales.
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The £2.4billion UK steel industry produces 7.2 million tonnes of crude steel a year - around 70% of the UK’s annual requirement.
It employs 34,500 people directly in the UK and supports a further 43,000 in supply chains.
Average salaries are £37,629 - considerably higher than average wages in many of the communities where plants are located.
The Mirror has been campaigning to Save Our Steel since 2015.
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