£500m Train Contract Secures Hundreds of Jobs at Hitachi Factory

Prime Minister Sir Keir Starmer has announced that a £500 million agreement has safeguarded hundreds of positions at a train manufacturing facility. Previously, a lack of new orders at Hitachi’s Newton Aycliffe facility in County Durham had raised concerns regarding the site’s longevity and the employment of its approximately 700 staff members. The government has now disclosed that a contract has been finalized for the construction of 14 “state-of-the-art” trains at the aforementioned factory. Sir Keir stated that the agreement provided “certainty and stability.” While addressing BBC Look North at the plant, the Prime Minister characterized the workforce as “world class” and indicated that the deal had alleviated the apprehension experienced by staff over recent months. “I stood before them last time I was here and said, if we win the election and form a government, I give you my word we will do everything we can to try to make sure there’s a deal to fill that gap and take away that anxiety,” he said. “It’s really good for train-building, it’s really good for the country but, on a human level, it’s so important for them, their families, the whole communities here that depend on those jobs.” When questioned about the government’s involvement in the private sector arrangement, he responded that it had assisted by “setting the strategy, by being clear about the orders we need, to ensure those deals take place.” The agreement for the construction of the five-car class 80X Hitachi electric or bi-mode trains was reached among FirstGroup, Hitachi, and Angel Trains, with deliveries anticipated to commence in 2027. Jim Brewin, Hitachi Rail’s chief director for UK & Ireland, characterized the agreement as a “positive step forward.” Additionally, the deal encompasses an arrangement for FirstGroup to lease an additional 13 five-car trains, contingent on the successful expansion of its Lumo services. “We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British-built trains,” Mr Brewin said. Graham Sutherland, CEO of FirstGroup, stated that the agreement would bolster UK manufacturing and “offer customers more choice as they consider affordable, environmentally friendly modes of travel.” The chief executive of the Northern Powerhouse Partnership, an organization representing businesses, informed BBC Look North that the decision provided Hitachi with “welcome breathing space.” Henri Murison commented that the preceding government “left a mess.” “There had been huge delays and hiatus because of the way they approached ordering new trains for operators either directly or indirectly under their control,” he said. “What we’ll now have is a number of train procurements coming forward, I would expect, over the coming months and years that will give Hitachi and other factories across the north of England a fair chance to compete for work.” North East Mayor Kim McGuinness expressed approval of the announcement, noting that safeguarding employment at Hitachi was among her highest priorities established upon her election. “Today shows the power of what we can achieve when we stand together, and that our great North East has bright days ahead of us,” she said. Concurrently, Tees Valley Mayor Ben Houchen characterized the announcement as cause for “celebration” but cautioned, “we need to make sure the government doesn’t walk away from this now and assume its job is done.” The Conservative peer indicated that there had been “a real risk” of the factory’s closure within the upcoming weeks or months. “The fact it’s secured, at least temporarily, is great news and we’ve got to thank the government for working hard. “It’s going to give lots of workers and their families comfort over the Christmas period and into 2025.” However, he noted that the factory’s long-term sustainability remained a matter for consideration. “This isn’t the end of the road.” For updates, follow BBC Tees on X, Facebook, Nextdoor, and Instagram. Story ideas can be submitted to northeastandcumbria@bbc.co.uk. Copyright 2024 BBC. All rights reserved. The BBC disclaims responsibility for the content found on external websites. Information regarding our external linking policy is available for review.