June 17 (UPI) — British Steel announced Tuesday that it has landed a new contract with the Network Rail railway company worth more than a half-billion dollars.

In a press release, British Steel’s Commercial Director for Rail Craig Harvey said, “The contract is a ringing endorsement of UK workers and British industry, underpinning the vital role we play in ensuring millions of passengers and freight operators enjoy safe, enjoyable, and timely journeys on Britain’s railways.”

The deal made between the two companies is a five-year arrangement valued at approximately $677 million that will have the steel company create about 7.7 to 8.8 tons of rail every year. Additionally, the contact can be extended for another three years.

British Steel is the only manufacturer of rail in the United Kingdom.

Transport Secretary Heidi Alexander posted to X Tuesday that she had met with representatives of British Steel to finalize the contract, and that “this deal truly transforms the outlook for British Steel and its dedicated workforce in Scunthorpe.”

The English town of Scunthorpe is a British Steel site that has reportedly supplied Network Rail with track for more than 20 years, and in the last decade alone they have manufactured over 1.1 million tons of rail for Network Rail.

The factory there had been scheduled to close its blast furnaces earlier this year but was saved when the government used emergency powers to keep it open for now.

“After taking urgent action to step in and save these historic blast furnaces from closure, we’ve now helped secure their long-term future by backing British Steel with meaningful government contracts, protecting thousands of skilled manufacturing jobs in the process,” said Alexander.

U.K. Business Secretary Jonathan Reynolds said Tuesday in the release that “This is great news for British Steel and a vote of confidence in the U.K.’s expertise in steelmaking, which will support thousands of skilled jobs for years to come.”