Tata Steel Scunthorpe plant given SNCF rail order boost

4 December 2015

Tata Steel has signed a five-year deal with French rail network SNCF to supply steel from its troubled Scunthorpe plant.

The Indian company said it had renewed its contract "with an extension option for a further four years".

Steel from its North Lincoln Road plant will continue to be shipped to its mill in France for rail tracks to be produced for the state-owned operator.

In October, the firm announced the loss of 900 jobs from the same factory.

A 45-day consultation period with affected workers ends this week.
The industry blames cheap Chinese imports for a collapse in steel prices.

Tata has been supplying steel and producing up to 108-metre lengths of rail to SNCF since 1999.

It is among the French network's four suppliers with Tata delivering the bulk of SNCF's 750,000-tonne requirement.

Minister for Small Business Anna Soubry previously said during a visit to the plant in October that she was "determined" to make sure steel continued to be manufactured in Scunthorpe.

The company pledged £3m to help create jobs in the town, with another £6m provided by the government.