LONDON Oct 21 Tata Steel, Europe's
second-largest steel producer, has won a new contract to supply
Britain's Network Rail with more than 95 percent of its rails
for at least five years.
The Indian firm, which has been struggling to produce steel
profitably in Britain due to shrinking demand plus high
production, labour and logistics costs, said on Monday it could
supply more than 1 million tonnes of rail under the contract.
The company's Scunthorpe plant, which produces steel for
construction and infrastructure, is the current supplier to
Network Rail. The plant's future would have been affected had
the contract not been renewed.
"Rail has been one of the more dynamic sectors in the global
long products market, and this is obviously good news for Tata
in a European finished steel market that remains very
challenging overall," said Chris Houlden, manager at metals,
mining and fertiliser specialists CRU Research.