This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2016/aug/10/bombardiers-derby-factory-wins-east-anglia-trains-deal-abellio

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Bombardier's Derby factory wins £1bn East Anglia trains deal Bombardier's Derby factory wins £1bn East Anglia trains deal
(about 9 hours later)
Bombardier’s factory in Derby has won a contract worth almost £1bn to build trains for the East Anglia rail network in a deal that will safeguard 1,000 jobs at Britain’s only remaining train maker. One of Britain’s great industrial survivors, the Bombardier train factory in Derby, has won a contract worth almost £1bn in a deal that will safeguard 1,000 jobs at the 140-year-old site.
The government has awarded the right to run the rail franchise until 2025 to Abellio, which operates the network. The subsidiary of the Dutch state rail company won against competition from Britain’s FirstGroup and National Express. The contract to make 660 carriages for the East Anglia network was announced alongside news that Abellio, owned by the Dutch state rail company, had retained the franchise to operate services on the route. The news is a boost for an east Midlands site that only five years ago was struggling for survival after losing out to a German rival for a key UK contract.
Abellio, owned by the Dutch state rail company, has pledged to invest £1.4bn to improve services between London’s Liverpool Street and stations in the east of England including Norwich, Cambridge and Stansted airport. Chris Grayling, the transport secretary, said the deal had secured the plant’s future into the next decade. “This is part of our plan to make an economy that works for everyone – not just the privileged few – by ensuring prosperity is spread throughout the country.”
As part of the deal, Bombardier will build 660 carriages at its Derby plant, securing 1,000 jobs “into the next decade”, the Department for Transport said.
Chris Grayling, the transport secretary, said: “By awarding this franchise to Abellio we will improve journeys for people in East Anglia. Abellio’s decision will ensure our train-building industry in Derby remains strong.” Tony Murphy, the Unite union’s national officer for the rail industry, said the contract award was excellent news for the factory and the local supply chain. “At this time of economic challenges, as ministers wrestle with what exactly Brexit means, the fact that 1,000 highly skilled jobs have been safeguarded is to be applauded.”
He said choosing Abellio and Bombardier was part of the government’s plan to spread prosperity throughout the country. Abellio chose Bombardier as its contractor but the government decided which operator would run the East Anglia network. Bombardier was Britain’s last remaining train manufacturer until Hitachi opened a factory to build intercity trains in Newton Aycliffe, Durham, last year. Bombardier’s Litchurch Lane factory, which employs about 1,600 people, has made trains since 1876 and is an important part of the economy in the east Midlands. But its fortunes have fluctuated with decisions on big contracts.
Abellio has promised to add more than 1,000 carriages, cut journey times by 10%, improve operational performance and install free wifi on trains and at stations. When the government awarded a £3bn contract to build trains for the Thameslink route to Germany’s Siemens in 2011, Bombardier cut 1,200 jobs from its workforce of 3,000 in a move that prompted much hand-wringing about Britain’s ability to maintain a manufacturing presence amid strong competition from continental rivals.
Bombardier, a Canadian company, operates Britain’s last train manufacturing plant, which employs about 1,600 people. The Litchurch Lane factory has made trains since 1876 and is an important part of the economy in the east Midlands. The last government responded by pledging to put British manufacturers on an equal footing with overseas competition but ministers remained constrained by European Union rules that precluded showing preference for domestic bidders.
When the government awarded a £3bn contract to build trains for the Thameslink route to Germany’s Siemens in 2011, Bombardier cut 1,200 jobs from its workforce of 3,000. A threat of closure was lifted in 2012 but Bombardier said the factory’s survival depended on winning more contracts. The Derby factory was ultimately spared from closure in the wake of the Thameslink loss but Bombardier, which is based in Canada, said its survival depended on winning more contracts. Bombardier fought off competition from foreign bidders in 2014 to win a £1bn contract for London’s Crossrail project but, in January, unions said awarding a £490m rail contract to a Spanish rival was a kick in the teeth for the Derby workers.
Bombardier fought off competition from foreign bidders in 2014 to win a £1bn contract for London’s Crossrail project, but in January unions said awarding a £490m rail contract to a Spanish rival was a kick in the teeth for the Derby workers. Des McKeon, Bombardier Transportation’s UK commercial director, said: “We’re delighted to be chosen, pending final contract signing, as the preferred supplier for new trains for the East Anglia franchise. We look forward to working with our customer, Abellio UK, to support them in transforming rail services throughout the region.”
Des McKeon, Bombardier Transportation’s UK commercial director, said: “We’re delighted to be chosen, pending final contract signing, as the preferred supplier for new trains for the East Anglia franchise. We look forward to working with our customer the Abellio UK, to support them in transforming rail services throughout the region.” The new contract with Abellio to run the East Anglia rail franchise lasts until 2025. The subsidiary of the Dutch state rail company, which has has been operating the route since 2012, won a new deal against competition from Britain’s FirstGroup and National Express.
Abellio has pledged to invest £1.4bn to improve services between London’s Liverpool Street and stations in the east of England including Norwich, Cambridge and Stansted airport. It has promised to cut journey times by 10%, improve operational performance and install free wifi on trains and at stations.