Train manufacturer Hitachi Rail says Government must "flatten the curve" on rolling stock procurement to get rid of the current boom and bust cycle that pushed the plant close to closure.
Executives behind the firm's 750-strong Newton Aycliffe plant submitted detailed evidence to MPs on the Transport Committee, which this week heard from fellow rail firms Alstom and Siemens calling for pipeline certainty to safeguard jobs. Hitachi said rail reform had caused a stop-start approach to rolling stock procurement, causing uncertainty in the sector with only two significant rolling stock orders since the end of 2019 and a lack of orders in the following years putting the º£½ÇÊÓƵ industry and jobs at risk.
The North East manufacturer, which also runs a smaller plant in Wales, has welcomed the under development Rolling Stock Strategy and the nationalisation of most rail infrastructure in Great Britain under Great British Railways. It called for the strategy to include a five to seven-year timeline for procurement, and clear objectives for green and digital innovations, as well as skills and supply chain growth.
Bosses also said nationalised railways can put a stop to rushed fleet testing and be more like Japan, where there is greater reliability and a steadier manufacturing rate.
Hitachi's Newton Aycliffe factory was handed a lifeline last year in the shape of a to build 14 new trains for FirstGroup, which runs train services including Lumo and Avanti West Coast. It followed a period of worry that a looming production gap threatened the site's future.
Since then the firm has secured a further for nine battery hybrid trains for Arriva Group. Last year, Hitachi ran the country's first successful trail of battery-powered intercity trains - which it said had opened up significant opportunities to retrofit existing rolling stock and bring down electrification costs, as well as reduce emissions.
Within its submission to Parliament, Hitachi said: "We welcome that in the past six to 12 months we have seen some market recovery, including three significant public procurements with Southeastern, TransPennine Express and Northern currently underway. All three procurements are due to awarded in 2026.
"We fully appreciate that flattening the curve has complexities and will take joined up strategic planning with industry and across Whitehall. But we also think it is important for the Government to assess and publish the impact and cost of a ‘do-nothing’ scenario if the curve is not flattened.
"There is no public evidence on whether this has been evaluated or presented to industry. The need to flatten the curve remains important to avoid recreating or repeating the systemic challenges the industry has previously faced."
Sambit Banerjee, the joint chief executive of Siemens Mobility Limited, which runs a competing facility in East Yorkshire, told MPs: "What the industry wants is certainty of the pipeline and certainty of the projects coming on time. We want to win competitively, but we are not getting that opportunity."
