Economy & Finance

Hitachi confirms ‘really positive talks’ with Government over North East train factory

Hitachi concerns were raised about the long-term future of the County Durham plant, which employs around 700 people, earlier this year

Hitachi rail factory at Newton Aycliffe
Hitachi rail factory at Newton AycliffeHitachi rail factory at Newton Aycliffe

Hitachi has expressed that it has had “really positive” discussions with the Government and rail sector companies in its push to ensure the longevity of its North-east facility.

The firm, which has around 700 staff at its County Durham site, voiced concerns about the plant’s long-term viability earlier this year due to a dwindling order book. In the lead-up to the General Election, Labour pledged their support for the plant; however, the absence of any new order announcements since then heightened job security fears.

Yet, executives at the company have now indicated that they are exploring a “myriad of options” to source the necessary work to guarantee the facility’s future. Their comments came as Hitachi showcased battery-powered train trials at Newton Aycliffe, which are expected to yield significant cost savings and boost the rail industry’s environmental credentials.

Jim Brewin, UK and Ireland Head of Hitachi Rail, remarked: “We’re focusing on two things: firstly the retrofit market and can we bring diesel trains back to Newton Aycliffe, can we change diesels for battery? The second one is in procurement competitions and bidding for new rolling stock and can we look at new battery trains as part of those proposals. There are currently between 750 and 1,000 trains that we currently operate in the UK. So the opportunity there is pretty big.”

In discussions regarding new orders with the Government, he expressed optimism: “It’s been really positive. You’ll have seen the sort of support we got in relation to the factory and we’ve had people here who are really positive about what we do, they understand this factory very, very well. So there’s ongoing conversations with Government, private and public in terms of what this might look like.”

He further elaborated on the nature of these talks: “There are a lot of very good conversations that we’re having, as I’ve said, with Government and the private sector and we’re hopeful that will come to something that is positive for everyone involved. I’m pleased with that in terms of what we’ve got and the conversations we’re having.”, reports Chronicle Live.

Mr Brewin shared his views at an event with rail industry leaders where the successful results from a trial with TransPennine Express and Angel Trains were showcased. This trial demonstrated that running intercity trains on battery power could slash fuel costs by 35% to 50%.

Looking ahead, the company has partnered with Innovate UK and the University of Birmingham to advance next-generation battery technology. Rail Minister Lord Hendy provided insights into the significance of the trials, stating: “Rail is already the most environmentally friendly form of public transport, and the success of this trial will pave the way for even greener, more reliable journeys for millions of passengers. This technology will play a vital role as we deliver our ambitious plans to transform and decarbonise the railways.”

North East Mayor Kim McGuinness, who has been instrumental in lobbying for more orders for the Newton Aycliffe plant, said: “What we want to see is young people growing up in this region, coming to work at this factory, building the trains of the future. Outside of this event our Combined Authority is running an apprenticeship event and Hitachi are there, talking to pupils.”

“I’m happy with the progress that has been made on the discussions with Hitachi about what happens here. We know this place has a bright future and I think this shows that it continues to think about what that future might look like. We’ve been working with Hitachi and the Department for Transport to make sure progress is made and everybody is positive about the future.”

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *