Under the agreement, the company will continue to supply 80% of Network Rail's rail needs and will supply a total of 337,000 tons of UK-made steel. Effective July 1, the contract secures the future of thousands of workers at Scunthorpe.
The new contract is seen as a sign of confidence in the UK's industry and workforce and has received positive comments from government and industry representatives.
This important development also comes at a time when trade talks between the UK and the US are heating up. US President Donald Trump has reportedly signed an agreement reducing tariffs on automotive and aerospace products. However, in the steel sector, British producers still face uncertainties such as the 25% import tariff and the “melt and cast” requirement.
Speaking at the G7 Summit, Prime Minister Sir Keir Starmer called it a “very important day”, while UK Steel called on the government to strike a fair steel trade deal with the US.
In a statement UK Steel commented: "UK Steel is encouraged to see the UK-US agreement agreed by Sir Kier Starmer and President Donald Trump take another step forward. Yesterday's meeting shows that the Prime Minister is taking personal responsibility for our steel industry's long-term relationship with the US market. We look forward to benefiting soon from a tariff reduction similar to that which the automotive and aerospace industries will enjoy within seven days. The UK steel industry badly needs clarification on the need for ‘melt and pour’ and the level of quotas available to UK steelmakers so that we can restore historic trade routes that have served both the UK and US economies for many years."
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