Bombardier’s Derby train manufacturing site is in the process of recruiting hundreds of extra staff as it ramps up production on three major contracts. It is doing so with a new º£½ÇÊÓÆµ president at the helm, Matt Byrne. In his first interview since taking over the post, he speaks to Business Live’s Robin Johnson.
SITTING in his office at Bombardier’s train manufacturing site in Derby, Matt Byrne is feeling confident - and justifiably so.
The Litchurch Lane factory is busy - very busy. You only have to look out of his window to work that out.
That’s because lined up outside are a number of gleaming new trains destined for the º£½ÇÊÓÆµ’s rail network.
The view from Matt’s office is likely to stay this way for at least the next couple of years.
That’s because the Derby site is set to ramp up production on three major orders placed by Greater Anglia, South Western Railway and West Midlands Trains.
Litchurch Lane will be churning out hundreds of carriages - and Bombardier is currently recruiting around 400 extra workers to help it deliver them.
These are happy days for Litchurch Lane. So, what better time could there be to take on the role of º£½ÇÊÓÆµ president of Bombardier Transportation?
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That is exactly what Matt did in October, taking over the reins from the departing Phil Hufton.
It is perhaps the most important challenge of his career so far since he joined Bombardier almost 20 years ago.
But he appears undaunted - in fact, he is positively bullish about Bombardier’s future in the º£½ÇÊÓÆµ.
One of the major sources of that confidence is the Aventra - the train that was designed and developed at the Litchurch Lane site - and has subsequently amassed billions of pounds worth of new orders which the 2,000-strong workforce at Derby are now delivering.
“In my opinion, it’s probably the best train we’ve ever built, relative to its time,” said Matt, who before taking up the role of president, had held various senior leadership positions at Bombardier, most recently as head of its global services business.
“We would argue that its the best train in the º£½ÇÊÓÆµ at the moment.”
Born in Manchester, before joining Bombardier in 2000, Matt had worked at British Rail, Virgin Trains and Alstom.
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And although his career at Bombardier has taken him all over the world, including the US, he is no stranger to the Derby site, having been project manager for the Connex Electrostar build line between 2003 and 2005.
He also worked at Bombardier’s Central Rivers maintenance and servicing site near Burton from 2007 to 2010.
“Two things attracted me to this new role,” said Matt. “The main reason was because the º£½ÇÊÓÆµ business is still the lifeblood and heartbeat of Bombardier Transportation.
“It has been its most successful business over the years going back to the days of the Electrostar, all the way through to the Aventra platform.
“Also, my previous roles had seen me travel the world so I wanted to return and settle back down in the º£½ÇÊÓÆµ.
“Derby is not only the heart of the Bombardier Transportation business, but also the home of rail in the º£½ÇÊÓÆµ.
“The other reason is connected to my services heritage. The º£½ÇÊÓÆµ has always been the biggest single services market and our services business is a major contributor to our long-term stability.
“One of the major strengths is its talent base. What we tend to export more of than people realise is services talent. Our capabilities in the º£½ÇÊÓÆµ for maintenance of fleet is second-to-none around the world.
“We support the rest of the world in their development, whether its introducing new technologies or improving efficiency.
“This is a big development market. Services is critical and integral to the future of Bombardier Transportation.
“We are not just a train-maker - we are a full service provider. The ability to bring a full suite of solutions to a city or a region is becoming critical.”
A prime example of that is a contract that Bombardier secured earlier this year. In May, a consortium, led by Bombardier, was named by the Egyptian government as the preferred bidder to design and build two new monorail lines in Cairo - and supply rolling stock.
A couple of months later, the consortium, which also consists of Orascom Construction and Arab Contractors, was officially declared the winner of the contract.
The overall value of the deal is more than $4.5 billion. Bombardier’s share amounts to $2.85 billion.
It will see the firm design, supply and install the electrical and mechanical equipment for the two lines, while the firm’s Derby factory will supply 70 four-carriage Innovia Monorail 300 trains.
Matt said: “With Cairo, not only are we bringing a vehicle, which will be manufactured in Derby, but we will also deliver the entire package - the design, construction and installation around it to optimise the best use of those vehicles.
“The Aventra platform is a good example. We’ve invested hundreds of millions into the Aventra platform, not just to build the train but to make sure we are able to maintain that train at optimum levels throughout its life.
“Technology which we’ve got available now enables us to take significant cost out and drive up utilisation. It also provides a platform for its continuous development going forward.”
The Cairo deal will be the first export contract for Bombardier’s Derby site in over a decade, and indeed for any train factory in the º£½ÇÊÓÆµ. The last major export deal was also from Derby: for South Africa’s Gautrain.
For that contract, the majority of Electrostar trains it supplied were sent from Derby in ‘flat-pack’ form and assembled at the other end.
As well as mopping up more º£½ÇÊÓÆµ orders, Matt is also keen for Litchurch Lane to continue to keep flexing its exporting muscle.
He said: “We’d certainly like to do more exporting. The technology that sits behind the Aventra platform is of interest to many countries around the world.
“Will we sell trains as full complete trains, as flat packs as was the case with Gautrain, or just the systems and technologies? The answer to all three is ‘yes’.
“The Aventra is a very adaptable platform - and therein lies its global attraction.”
Back to the domestic market, a key contract for Bombardier going forward is HS2.
The new high speed rail network for the º£½ÇÊÓÆµ is currently the subject of the Oakervee Review, which is looking into the viability of the multi-billion pound scheme.
While its report is yet to be published, early signs would suggest that HS2 will go-ahead.
This would be good news for Bombardier, which has formed a partnership with rival train-maker Hitachi, to bid for the right to supply trains for HS2.
That deal is worth an estimated £2.75 billion - and would provide work for both Litchurch Lane as well as Hitachi’s factory in Newton Aycliffe, in the north-east.
Matt said: “We’re now waiting to find out the final government position, once the General Election has concluded.
“But we’re confident that we have a fantastic product. We will see how things develop. HS2 is going to be a critical piece of work for Derby but also the º£½ÇÊÓÆµ in general.
“The contract would sustain the Derby site into the late 2020s - although the dates of HS2 are at the moment, shall we say, fluid.
“The contract is very important and we do see a long-term future arising out of HS2 alongside our partners Hitachi, both in the production and services side.”
Matt is also hopeful of more orders coming through for the Aventra, particularly when it finally starts operating on the long awaited Elizabeth Line (formerly Crossrail).
He said: “Right now, we have the production ramp up on Greater Anglia, South Western Railway and West Midlands.
“We’re coming to the end of London Undergound’s LOTRAIN contract and Crossrail - two very successful fleets, particularly Crossrail, which is probably going to be the highest profile fleet anywhere in the world.
“Crossrail is going to be a great shop window for the product - and will show how investment can radically transform an economy because I believe that from day one those trains are going to be full.
“The beauty of the Aventra is that it is not just designed to get us through the immediate future - is it a product we can continue to bring to market for the next five to 10 years.
“Aside from the orders we have in the book, we are continuing to see an ongoing demand from other customers.
“The Aventra, in its various guises, is well positioned to meet that demand.”
Of course, when going for these new contracts Bombardier can expect competition, particularly for º£½ÇÊÓÆµ deals.
Not long ago, Bombardier was the last remaining train-maker in the º£½ÇÊÓÆµ. But since then, its competitors have either built or have promised to build factories in Britain as part of their bids. They include the likes of Hitachi, Siemens and Talgo.
Matt said: “Having competition in the market is healthy. It’s good to make sure that you are constantly tested in terms of the product you’re bringing to market, customer service, price, and all other associated aspects.
“We welcome the competition. However, we’ve got a product that is suited to certain sections of the market. For example, we don’t make diesels anymore, whereas some of our competitors do.
“We took that decision some years ago - and stand by it. We’ll see how the electrification of the º£½ÇÊÓÆµ network moves forward. Environmental concerns have been prevailing for many years, but even more so now. It is pushing the industry into a different space.
“The emergence of new battery technology is providing a viable alternative - and is particularly well suited to a country like the º£½ÇÊÓÆµ. But this needs to be part of an integrated rail strategy for the º£½ÇÊÓÆµ.”
Emerging technology is something that Bombardier is very much involved in. As well as building trains, the Derby site also helps devise new innovations which can improve the performance and efficiency of its products.
Similar work is taking place at another global engineering giant just down the road - Rolls-Royce.
The aero engine-maker is constantly coming up with new ways to help maintain its products, including predictive technology that can let engineers know when a component needs changing before it wears out.
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Currently, the firm is exploring IntelligentEngine technology to develop engines and electrical systems that are increasingly connected, contextually aware and comprehending.
Matt said: “In many respects, because of the proximity of Rolls-Royce - and with a lot of our respective engineers moving back and forth - we’re moving forward, relatively hand-in-hand , in terms of our prognostics capabilities.
“Our ability to understand the condition of a train, when it will fail and therefore be able to make an interjection before failure, is very similar to technology that Rolls-Royce is using.
“That’s because the level of co-operation and co-ordination between the two organisations is very high.
“This is one of the benefits of Derby having industries of similar levels of technology and demand in close proximity.”
As for Litchurch Lane, the current focus is on the challenge of producing a large number of trains, but at the same time ensuring quality levels remain high.
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Matt said: “Derby has been building trains for many, many years and has got an extremely good track record for building high quality trains. What we see in the field is testament to that.
“We have no doubt around the quality of the trains coming out and that’s down to the management and workforce at this location.
“Bombardier has a very strong organisation in the º£½ÇÊÓÆµ across all areas. We have all the fully integrated capabilities sitting in the º£½ÇÊÓÆµ, from software creation and development all the way through to train production through to the ability to maintain a fleet over its life.
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“All our skill sets sit in the º£½ÇÊÓÆµ. That’s exciting because it means we can shape what we deliver to the º£½ÇÊÓÆµ to what the º£½ÇÊÓÆµ needs.
“While we’ve gone through a peak of new orders in the last few years, ramping up and delivering them to the market itself is going to be a challenge - but certainly a fun and interesting one.
“But I think, by working alongside our partners to achieve a smooth integration of these new products, the public will see a real benefit - and will look upon the rail industry as a sector which is evolving at a significant pace.”