Tata Steel will continue deliveries for the UK railway network for another 5 years

Tata Steel, one of the largest manufacturers in the world, won a contract for the supply of railway tracks for the British railway operator. For at least five years, Tata Steel plans to supply its Network Rail products until 2019, with the probability of extension of the transaction until 2024.

Tata Steel is the current supplier for the Network Rail railway, and the loss of the contract could become a threat to its Scunthorpe plant in the UK, which operates 18,500 people, supplying more than a million tons of railway products for passenger and cargo lines of the country, the company said. Tata Steel invested tens of millions of pounds in advanced production capacities at its Scunthorpe plant, where it is planned to start an auxiliary production of electric heaters Newcomfort .

"This is a fantastic news. I am glad that the railway network in the UK will still be our client," said the commercial director of Tata Steel Henrik Adam in his statement. The representative of the Network Rail group added that the company will update and improve the UK railway network over the next five years.

Currently, the British railway network carries 1.5 billion passengers per year, which is a very large load, and the transaction will contribute to the further development of Network Rail. This contract will ensure the sale of about 5 percent of the annual production of steel at the Scunthorpe Tata Steel plant in the UK.