British Steel wins £70m contract for port redevelopments in Nigeria
It will spark an increase in production at its site in Scunthorpe
British Steel is increasing production after securing a £70 million contract for port redevelopments in Nigeria, one of its biggest ever export orders.
The agreement, with Hitech Construction Africa Ltd, will see British Steel supply 120,000 tonnes of steel, sparking an increase in production at its site in Scunthorpe.
Chief executive Allan Bell said: “This is a record-breaking contract for British Steel and a major boost to our 4,000 employees and many more people in our supply chains.
“After Government intervention last April, everyone at British Steel has worked hard to stabilise the company.
“This deal represents us moving from stabilisation to building long-term sustainability for the business.
“As one of the largest ever orders for billet in the history of this company, it marks a tremendous vote of confidence in British Steel and UK manufacturing, and as the biggest order we have ever secured with UK Export Finance, it demonstrates how we are working with the UK Government to meet the global demand for our products.”
The news follows a Government announcement on a steel strategy aimed at securing the industry’s future.
Craig Harvey, British Steel’s commercial director for semi-finished products, said: “Our capacity and capability ensure we offer a unique solution to the developers of major infrastructure projects, and this contract underlines our worldwide reputation for delivering market-leading products with first-class logistics.
“We’re delighted to have secured this order and look forward to supporting this exciting development.”
Business and Trade Secretary Peter Kyle said: “Hot on the heels of our landmark steel strategy, this is a major win for British Steel made possible by UK Export Finance which is testament to the quality of UK-made steel and the booming UK-Nigeria relationship.
“Through our new strategy we’re backing British steelmakers for long-term success at home and abroad, and this contract will reinforce British Steel’s world-class expertise while supporting jobs and growth in Scunthorpe.”
Tim Reid, chief executive at UK Export Finance, said: “This deal represents a milestone for UK-Nigeria trade relations and demonstrates the full capacity of UK Export Finance to unlock transformational opportunities for British businesses, while supporting sustainable economic growth in key markets.
“With over £200 million feeding back to British companies, including one of the largest steel billet contracts in British Steel’s history and our new memorandum of understanding, UKEF are laying the foundations for a deeper, long-term relationship with Nigeria that will open doors for British exporters across the entire region.”
Mr Kyle gave details of the new strategy to MPs in the Commons, saying it offered the steel industry sustainability over the long term, adding it was just the beginning of the Government’s help for the sector.