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Bombardier handed £188m Southern contract | Bombardier handed £188m Southern contract |
(about 1 hour later) | |
Derby trainmaker Bombardier has been awarded a £188m contract. | Derby trainmaker Bombardier has been awarded a £188m contract. |
The deal, to build 130 carriages for rail company Southern, was part-funded with an £80m government subsidy. | The deal, to build 130 carriages for rail company Southern, was part-funded with an £80m government subsidy. |
The Department for Transport had been criticised for choosing German rival Siemens over Bombardier as preferred bidder for the £1.4bn Thameslink rail contract. | The Department for Transport had been criticised for choosing German rival Siemens over Bombardier as preferred bidder for the £1.4bn Thameslink rail contract. |
It is hoped the new contract will help secure the Canadian-owned company's future in Derby. | It is hoped the new contract will help secure the Canadian-owned company's future in Derby. |
Bombardier announced 1,400 job cuts after losing out on the Thameslink deal in June. | Bombardier announced 1,400 job cuts after losing out on the Thameslink deal in June. |
'Crucial order' | 'Crucial order' |
Transport Secretary Justine Greening said: "This deal for more than 100 new carriages is great news for rail passengers and brilliant news for Bombardier and Derby. | Transport Secretary Justine Greening said: "This deal for more than 100 new carriages is great news for rail passengers and brilliant news for Bombardier and Derby. |
"It lands Bombardier with a crucial train order and I look forward to Bombardier workers in Derby being among the winners of this important deal. | "It lands Bombardier with a crucial train order and I look forward to Bombardier workers in Derby being among the winners of this important deal. |
"This deal, helped along by my department, shows my determination to invest in Britain's railways." | "This deal, helped along by my department, shows my determination to invest in Britain's railways." |
Paul Roberts, from Bombardier, said: "We are delighted to be awarded this contract by Southern. | |
"This is a significant project which emphasises the performance of Bombardier's products in the UK. | |
"The new trains will be manufactured in the UK, with initial production commencing in the latter half of 2012." | |
The firm did not say what impact the deal would have on jobs. | |
'Looming deal' | |
Bob Crow, general secretary of rail union RMT, said: "The Southern carriages order is both welcome and deserved and shows that Bombardier in Derby is geared up to deliver top-quality engineering. | |
"However the award of this contract does not let the government off the hook on either the unsigned Thameslink contract or the looming Crossrail deal. | "However the award of this contract does not let the government off the hook on either the unsigned Thameslink contract or the looming Crossrail deal. |
"That's the work we need to secure the long-term future of train building in the UK." | "That's the work we need to secure the long-term future of train building in the UK." |
Southern runs services in south London, Surrey, Sussex and Kent. | Southern runs services in south London, Surrey, Sussex and Kent. |
The new carriages will go into service from December 2013. | The new carriages will go into service from December 2013. |