The headline numbers from British Steel’s new Turkish contract look impressive: tens of millions of pounds, 36,000 tonnes of rail, 23 new jobs, and 24-hour production restarted for the first time in over a decade. But behind those figures lies a deeper financial reality that no single contract can fix — losses of £1.2 million a day, adding up to a total government bill of £359 million since the emergency takeover.
The deal with ERG International Group covers rail for Turkey’s 599km Ankara–İzmir high-speed railway — a flagship infrastructure project that will cut travel times and reduce emissions in one of the country’s most important transport corridors. British Steel, supported by UK Export Finance, beat international competition to win the contract, demonstrating both its product quality and its commercial tenacity.
UK Steel has praised the deal as “essential to underpinning a sustainable turnaround,” and the industry body’s director general has called for the government to follow up with structural reforms — particularly on energy costs and import safeguards — that address the root causes of British Steel’s financial difficulties. Without those reforms, even a series of major export contracts cannot guarantee the plant’s survival.
The history of British Steel’s recent ownership is instructive. Greybull Capital took it over in 2016; it collapsed in 2019. Jingye Group bought it out of receivership in 2020, then tried to close it when losses hit £700,000 a day. Under government control, those losses have widened to £1.2 million — a trajectory that cannot continue indefinitely.
The Turkish deal is genuinely good news, and it would be wrong to dismiss it. But it should be understood for what it is: one positive step in a much longer journey, and one that makes the urgency of a comprehensive long-term plan for British Steel all the more clear.