Bloomberg News

Bombardier’s $296 Million Order Brings Reprieve to U.K. Factory

December 28, 2011

Dec. 28 (Bloomberg) -- Bombardier Inc., which lost out to Siemens AG in a U.K. trainmaking contract, won a $296 million order to build trains for Britain’s Southern Railway, helping ease pressure on jobs at its Derby, England site.

The Canadian manufacturer will supply 130 of its Electrostar cars to Southern, which operates on commuter routes in and out of the U.K. capital. Production will start in the second half of 2012, the company said in a statement.

Bombardier is cutting jobs at its Derby plant after the U.K. government’s decision to award a contract to build 1,200 carriages for Britain’s new Thameslink commuter service to Siemens on June 16. Siemens will carry out most of the manufacturing work in Germany.

“The award of this contract does not let the government off the hook on either the unsigned Thameslink contract or the looming Crossrail deal,” Geoff Martin, an official at the RMT union, said in an e-mail. “That’s the work we need to secure the long term future of train building in the U.K.”

To contact the editor responsible for this story: Andrew Noel at anoel@bloomberg.net


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