After a series of intense discussions with the Transport Secretary, Alstom secured a vital new order
After a series of crisis talks, the largest train factory in Britain will be saved from closure after Transport Secretary Mark Harper signed off on an important new order.
Alstom’s Derby plant, which has 3,000 employees and finished its last remaining trains in March is expected to win a contract for 10 new commuter vehicles after intense discussions between Mr Harper’s and Henri Poupart Lafarge, the boss of French company Alstom.
The new work is scheduled to begin in the first half 2025. It will fill a gap before Derby begins building a fleet express trains for HS2 in mid-2026.
Alstom informed unions in early April that the factory was at risk due to the drought. A redundancy procedure for 1,200 workers had to be restarted.
A source confirmed that Mr Poupart Lafarge traveled to London on 16 April to make Mr Harper aware of the gravity of the situation. A breakthrough was achieved when the Government agreed that it would finance five extra trains for the Elizabeth Line, in addition to the five other trains which had already received outline funding from Treasury.
The Department of Transport has not yet received any new orders following earlier discussions.
Sources close to the negotiations said that Mr Harper had agreed to finance construction of Aventra railcars. The trains will have a total 90 railcars. Transport for London (which oversees the Elizabeth Line, and will be the owner of the new trains) still has to submit a formal business plan for the purchase. However, this process should not pose any significant obstacles, according to the sources.
Alstom’s Litchurch Lane Factory in Derby was facing closure after the final testing in four to five months. This would have thrown HS2 into chaos, and left Britain as the only G7 nation without a combined design and manufacturing capability.
Alstom’s spokesman stated: “The parties agreed to end discussions as soon and as early as possible, but no later than May 31.” This could secure the future for the Litchurch Lane Site.”
In a post on social media, Mr Harper stated that he had held a “constructive” meeting with Alstom about the future of the train manufacturing industry in the UK. He also said that the intensive discussions would continue in order to finalise the agreement.
In a letter sent to the MPs who represent constituencies in Derby, Mr Harper stated that it is the French company’s responsibility to offer competitive pricing and to be transparent about costs to ensure a swift conclusion of the contract. Alstom has been asked to confirm in writing that they will make Litchurch Lane a design and production hub.
Alstom will move other work to Litchurch Lane in order to maintain jobs until the beginning of the new contract. The factory has a history of more than 140-years and supports 15,000 jobs within the supply chain. It also contributes around £1bn to GDP annually.
As Hitachi prepares to finish manufacturing its last orders this summer, the future of Hitachi’s train plant in County Durham is uncertain. Newton Aycliffe’s site is expected to begin building HS2 trains in the second half next year, before sending them to Alstom to be completed. However, there are currently not enough orders to get it to this point.