Bombardier awarded £188 million contract

Derby-based train manufacturer Bombardier has acquired a £188 million contract from the Department for Transport.

Travel Insurance News - 29/12/2011

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The news comes after DfT officials drew heavy fire earlier in the year for opting to award the £1.4 billion Thameslink contract to the Bombardier’s German rival, Siemens. Following the announcement, the Canadian-owned company said in June that it would have to cut 1,400 jobs.

Justine Greening, the transport secretary, said in a statement that the deal would involve more than 100 carriages and that it was “brilliant” for Bombardier and for Derby, adding that the contract reflected the DfT’s commitment to investing in UK rail networks.

The company said that all of the new carriages are to be built in the United Kingdom and that production would begin in the second half of 2012. However, the firm has not yet commented on how it would affect jobs.

RMT rail union general secretary Bob Crow said that the Southern contract is both deserved and welcomed by Bombardier and showed that the Derby manufacturer is capable of high quality engineering. However, he added that the contract does not let transport officials “off the hook” for the Thameslink decision or for the looming Crossrail contract.

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