'Time is short' as talks to save Derby's Alstom train factory continue
A major train manufacturer in Derby is warning that "time is short" as talks continue with the Government to provide enough work for its plant to remain open.
Alstom, which took over the 180-year-old Bombardier firm in 2021, has warned that it will have to close the factory, cutting all 3,000 jobs at the Litchurch Lane site, if it can't secure new train orders for work beyond May this year.
With the cancellation of the northern leg of HS2, and delays to the project overall, Alstom bosses say there's a gap in productivity for the site which will mean it's not viable to keep it open, and work will be moved overseas.
Speaking to BBC Radio 4, Nick Crossfield, Alstom's UK Managing Director said; "We're coming to the end of a very large programme that we've delivered over the past four years. New build is in the process of ending right now. Between now and May-June time, we will effectively go down to a position where there is very little or no activity in what is one of the group's largest facilities worldwide.
"We've been in discussions with the Government now for around 10 to 11 months and we've been exploring with the Government the possibility of bringing work into the facility for the next 18 months. The market is there in the medium to long term. What we're talking about is covering a gap of around 18 to 19 months.
"We've been talking to the Government specifically about accelerating future projects and refurbishment projects into the facility that would allow us to maintain that capability, and when the market comes back and the volume starts to return, we can re-mobilise. But we've been at this now for 11 months and we're here at this point in time with no firm commitment.
"As we sit today, we don't have enough of a commitment to guarantee that we will maintain a presence in the UK, at Derby. We've got some very specific proposals which we've suggested to the Government that would work for us. But we do need a decision, we need a clear commitment that this volume will come.
"They've been collaborative discussions, they've been very detailed discussions. We've provided the Government with a great degree of information and the rationale for why it makes sense to do these things. But unfortunately we are here with no decision. It's a straight business decision, we do not have, today, the commitment that would allow us to take the decision to remain."
He added that the company is competing for contracts globally, but that the size of the facility at Derby needs a mixture of contracts to work on.
There are 3,000 jobs currently at the plant, which supports a further 12,000-15,000 in the national supply chain.
Mr Crossfield said; "Ultimately the whole 3,000 is at risk, and the impact on the supply chain would be considerable."
In a statement to ITV News, the company said; "Adessia will be Alstom’s next generation of commuter train, and it is a huge opportunity for Derby and the wider UK rail sector.
“We are continuing to hold very constructive discussions with the Department for Transport to find a sustainable future for Derby, but time is short as our current projects are almost complete.
“We are committed to working with the Government to create the certainty our staff and UK suppliers need and deserve.”
A spokesperson from the Department for Transport said; "Rail manufacturing plays an important role in growing the UK economy and delivering better services for passengers.
"The Government is committed to supporting the entire sector and we remain in close contact with Alstom to secure a sustainable future for rail manufacturing at Derby."
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