The need for train-maker Bombardier to win more work for its Derby factory has ramped up after it was announced that the firm had missed out on a £400 million deal to supply new trains for the East Midlands.
Abellio Ƶ, which will take over the East Midlands franchise next month, has announced that it has selected Hitachi to deliver its new trains.
And, as a result of the decision, the new carriages will be built at the Japanese firm’s Ƶ factory at Newton Aycliffe in the north east.
Bombardier, which has its Ƶ factory in Litchurch Lane, Derby, had been in the running to supply the trains, which will replace the franchise’s current diesel-powered Meridian trains.
The trains that will be made by Hitachi will be bi-mode trains, which are capable of running on both diesel and electricity.
In a statement, Bombardier said: “Bombardier is clearly disappointed that we have not been selected to supply bi-mode trains for the East Midlands franchise.
“We believe we submitted a competitive bid - on technology, strength of product, deliverability and cost, and will seek formal feedback from Abellio.”
Bombardier’s Litchurch Lane factory is currently busy delivering record numbers of trains for a range of Ƶ rail franchises.
However, after 2021 the only deal in the firm’s order book is to supply monorail trains to Cairo, in Egypt.
It is understood that missing out on the East Midlands deal will not result in any immediate job losses at Litchurch Lane, which employs around 1,600 people.
However, it does heighten the need for the firm to win future new contracts - particularly after missing out on other deals, including the £2.5 billion Piccadilly Line contract, which London Underground awarded to Siemens.
Among the deals that Bombardier is still in the running for is the £2.75 billion contract to build the trains for HS2.
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Bombardier is one half of a joint venture that is bidding for the work. Ironically, the other company in the partnership is Hitachi.
The new trains Hitachi will supply for the East Midlands are a key part of Abellio’s pledge to invest heavily in the franchise, which it is due to start operating from August 18 - taking over from the previous operator, Stagecoach.
The franchise, which will be operated by a company established by Abellio called East Midlands Railway, will run for eight years, with a possible extension of a further two years.
