Yahoo Finance Train-maker Alstom wins £370m Elizabeth line order
Train-maker Alstom has signed a contract worth £370m to build trains for London's Elizabeth line.
The announcement comes after the firm began a redundancy consultation at its Litchurch Lane factory in Derby due to a gap in orders.
The contract with Transport for London will see the firm provide 10 new nine-car Aventra trains for the network.
Work for the project, which includes associated maintenance until 2046, will be carried out at the Derby site.
In November, the company warned more 1,300 jobs were at risk at Litchurch Lane along with many more in the supply chain due to a shortage of work.
Discussions between executives from the company and Transport Secretary Mark Harper were understood to have ended in May.
'Confirmed workload'
Alstom had previously said that 10 trains would be the minimum order needed in order for the Derby site to continue producing them.
A spokesperson said the announcement enabled the manufacturer to begin the process of restarting manufacturing in the city.
Managing director Nick Crossfield said: “We are delighted to now have a confirmed workload for Derby Litchurch Lane and our supply chain across the UK.
“The UK remains one of Alstom’s most important global markets.”
The contract includes new trains that will be funded by £220.5m from the Department for Transport (DfT).
Meanwhile, Transport for London will also contract the provision of train maintenance on the units until 2046.
The DfT said the trains were needed due to "strong passenger demand" expected on the Elizabeth Line, and they would allow increased capacity on the network in future.
Following the announcement, Alstom told the BBC its voluntary redundancy consultation remained open, although no compulsory redundancies had been made to date.
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