Hitachi Rail has entered into a £500 million agreement with FirstGroup PLC (LSE:FGP) and Angel Trains Limited to lease 14 five-car class 80X Hitachi trains.
Set to be manufactured in Hitachi’s facility in Newton Aycliffe, County Durham, the fleet will comprise 70 cars, including electric, battery-electric, and bi-mode trains.
The announcement came just hours after Hitachi chair Toshiaki Higashihara warned that the future of the Newton Aycliffe factory is in doubt if construction plans for HS2’s scrapped northern leg aren’t revived.
Higashihara said that unless significant infrastructure projects are launched within the next year, the factory's 750 jobs could be jeopardised.
Lo and behold, the new agreement includes an option for FirstGroup to lease up to 13 additional trains, contingent on approval from the UK Office of Rail and Road.
If realised, this would involve further investment of £500 million.
Speaking on the development, FirstGroup chief executive Graham Sutherland stated: “The introduction of our new service between London and Carmarthen, and the extra capacity on Lumo and Hull Trains, will significantly increase our open access portfolio over the next few years, with further expansion possible should our recent applications be successful.
“The new trains, to be manufactured for us in County Durham by Hitachi, will support UK manufacturing and offer customers more choice as they consider affordable, environmentally friendly modes of travel in the future, and we are pleased to be taking them forward.”
Jim Brewin, chief director of UK & Ireland at Hitachi Rail, added: “This contract is a positive step forward, and just recognition for the hard work and patience of our teams across the Hitachi Rail UK business over recent years.
“We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British-built trains.”