Train manufacturer Alstom is in “intense discussions” with the government over possible new train orders to save its struggling Derby plant.
The government has “secured approval in principle” for Alstom to manufacture five Elizabeth Line trains on order to Transport for London (TfL), on top of five trains confirmed in March.
It’s understood this would meet the ten train minimum requirement for the Litchurch Lane manufacturing plant to remain open – after redundancy consultations began this month.
Transport secretary Mark Harper wrote to local MP Amanda Solloway, saying: “Subject to securing the necessary commercial agreements between TfL and Alstom… this would enable Alstom to maintain sufficient capacity at Litchurch Lane until the confirmed new HS2 work comes onstream and until it is able to compete for new orders in the market.”
Harper said he met with CEO Henri Poupart-Lafarge and emphasised the need for Alstom to offer “competitive pricing” and transparent costings on the new Elizabeth Line trains.
He requested the firm “confirm in writing their long-term commitment to invest in Derby”, and stressed that he was “confident… a solution is now in sight”.
An Alstom spokesperson said: “We are now in a period of intense discussions with the government and TfL about a potential train order for the Elizabeth Line given the levels of passenger demand.
“This could help secure the future of the Litchurch Lane site. The parties have agreed to conclude discussions as soon as possible and no later than the end of May.
“We will be making no further comment at this time.”
Paresh Patel, Unite the Union’s regional secretary, said: “We’re watching the development very closely.
“Obviously, we don’t have all the details, but there does seem to be some encouraging movement. But until deals have been signed and contracts have been signed, there is no deal.
“We’ve been here before where we felt it was close to getting the matter over the line but we still continued to talk about it 10 months on.”