The announcement that British Steel has secured a major contract to supply rail for Turkey’s newest high-speed railway has raised an important question: if the plant can win contracts like this, what does that say about the need — and the urgency — for a comprehensive long-term industrial strategy to ensure it can continue to do so?
The eight-figure deal with ERG International Group covers 36,000 tonnes of rail for the 599km Ankara–İzmir line — one of Turkey’s most significant infrastructure investments. Supported by UK Export Finance, the contract has created 23 new jobs at Scunthorpe and restarted 24-hour production for the first time in over a decade. By any commercial measure, it is a success.
But the financial context is stark. British Steel is losing £1.2 million per day under government control, with total losses now at £359 million. The plant has no permanent owner, faces persistently high energy costs, and operates in a market where cheaper imports exert constant competitive pressure. Winning international contracts helps — but it is not sufficient on its own.
UK Steel has made this point explicitly. Its director general called the Turkish deal “essential to underpinning a sustainable turnaround” while warning that structural pressures facing the sector cannot be addressed by contracts alone. Energy cost parity with international competitors and stronger import safeguards are both urgently needed, the industry body argues.
If the Turkish deal teaches us anything, it is that British Steel has genuine value — in its workforce, its technical capability, and its international reputation. What it needs now is an industrial strategy that allows it to realise that value sustainably. Without that, the current pattern of commercial wins against a backdrop of mounting losses cannot continue indefinitely.