Hundreds of jobs at a major train factory in County Durham are set to be saved.
A contract to safeguard the future of Hitachi Rail’s operations in Newton Aycliffe has been confirmed by the Government, as part of what Number 10 called “a £500 million deal that will uplift the industrial heartlands, and boost rail services for passengers across the UK”.
Prime Minister Sir Keir Starmer announced on Friday that an agreement had been struck for Hitachi to build 14 new trains for FirstGroup, which runs train services including Lumo and Avanti West Coast.
Major worries about the plant have circled for months, with fears that a looming production gap posed a risk to its workforce.
Labour had promised before and during the general election campaign that it would take action to save the factory, which employs around 750 people.
But, despite claims that the site’s future could be secured “with the stroke of a pen”, there was no such confirmation in the first five months of Sir Keir’s administration.
That uncertainty ended on Friday, however, with confirmation of this deal.
The news comes a week after former transport secretary Louise Haigh’s sudden resignation, the first cabinet casualty of the new Government, and on the day after Sir Keir laid out his ‘plan for change’ .
The Prime Minister, who visited the Hitachi factory in April and will return to the site today, said: “Our Plan for Change has set out ambitious milestones that will deliver real improvement in people’s lives – raising living standards across the country.
“That means taking grown-up approach to business and using the heft of Government to solve problems, not create them. Getting people in the room to have the hard conversations which have been ducked for years.
“That approach is paying off. Not only has it saved jobs, but it has given business the certainty and stability they need to thrive.
“Today’s announcement is a case in point. We helped secure a deal that will help protect hundreds of jobs, keep this business ticking, and improve rail services.
”I made a promise to the workforce of the Newton Aycliffe factory and today, I’m delivering on that promise.”
The deal between FirstGroup, Hitachi and Angel Trains is for 14 new five-car class 80X Hitachi electric or bi-mode trains, with a total of 70 cars.
Delivery of the new trains is expected to commence in late 2027, with FirstGroup having an option to lease up to a further 13 five-car trains should the company’s recently-submitted other open access applications be successful.
Safeguarding the future of the Hitachi plant was top of a wish list sent by North East mayor Kim McGuinnness to Downing Street this summer.
The Labour mayor said on Friday: “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. We have a government on our side, and working with me to make the North East the home of real opportunity.”
Jim Brewin, chief director of UK and Ireland at Hitachi Rail, called the new contract 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”.
Graham Sutherland, FirstGroup Chief Executive Officer, added: “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.”
