Massive train order for UK
Largest UK train procurement £4.2 billion gets Hitachi technology
The UK government has confirmed the largest and most ambitious train procurement programme undertaken in the UK after a delay of more than three years.
The deal, is worth £4.5bn and will see 92 trains built by Agility Trains, a consortium led by Hitachi.
The government was pushing to announce the deal before the start of the Olympics where a Hitachi Javelin train is in use.
In addition to the plant’s 700 jobs, it will support thousands of supply chain posts – estimates vary from 6,000 to almost 9,000.
"This is potentially for County Durham and the Tees Valley what Nissan [car manufacturing at Sunderland] is for Tyne and Wear," said Phil Wilson, Labour MP for the local Sedgefield constituency.
Mr Wilson said the fact Hitachi was establishing a research and development facility at the Newton Aycliffe site underlined that this was "not just assembly but manufacturing".
Once built, the new rolling stock will enter the rail system via the same rail link, running alongside the site, on which railway pioneer George Stephenson assembled his Locomotion No 1 steam engine in 1825.
Kevin Rowan, regional TUC secretary, said ministers "should look closely at what we’ve achieved here and appreciate the value in investing in under-developed regions to create economic growth and decent jobs for the future".
"A new train factory is fantastic news for Britain and will be welcomed by everyone who wants to see a thriving UK manufacturing sector," said Justine Greening, the transport secretary.
The complicated deal will see the government in effect lease the trains from Agility over a 27-year period.
Hitachi plans to ship most of the main components from its Japanese factories, with the plant in County Durham assembling the trains.
European procurement rules prevent Hitachi discriminating in favour of a UK supplier. The Javelin is the only other Hitachi-built train running in the UK on domestic services and operates between Kent and London using the high-speed rail line to the Channel tunnel. It has 40 per cent European content by value.
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