Behind British Steel’s announcement of a major new contract to supply rail to Turkey lies a significant piece of government support. UK Export Finance, the UK’s export credit agency, played a crucial role in enabling the eight-figure deal with ERG International Group — a reminder that international trade finance can be as important as product quality in winning big contracts.
The deal covers 36,000 tonnes of rail for Turkey’s 599km Ankara–İzmir high-speed railway, a project that will cut travel times and reduce carbon emissions in one of the country’s busiest transport corridors. British Steel’s ability to supply rail at this scale, quality, and price was made more competitive by UK Export Finance’s involvement, which helped offset some of the cost disadvantages that UK manufacturers face relative to overseas rivals.
The practical impact in Scunthorpe has been immediate: 23 new jobs created and 24-hour production restarted after more than a decade. These outcomes demonstrate the value of well-designed export finance support in helping UK manufacturers win contracts that generate employment and industrial activity at home.
UK Steel has praised the deal and called for more such support — including energy cost assistance and stronger import safeguards — to help British Steel and the wider UK steel industry compete more effectively. The director general described rail as a “strategically vital, high-value product” that warrants sustained government backing.
Against the backdrop of £1.2 million in daily losses and a total government bill of £359 million since the emergency takeover, the Turkish deal is a reminder of what British Steel can achieve with the right support. It also raises questions about whether more systematic and structural support — not just export finance on a case-by-case basis — is what the plant ultimately needs.