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Hitachi Factory - First Group order 14 new trains with options for 13 more

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800001

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The local paper, The Northern Echo, tonight is leading with a story that Kier Starmer will announce a land mark deal to save the plant.

Article is behind a paywall, so the only text to read is below.


The future of Hitachi’s Newton Aycliffe plant has been secured, with a landmark deal due to be announced by Prime Minister Sir Keir Starmer tomorrow - a major victory for a campaign by The Northern Echo.
 
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pokemonsuper9

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Didn't get paywalled for me for whatever reason (usually news sites are extra-aggressive against firefox and adblockers)
Not had time to filter through it yet, just copied and pasted the entire text content.
The future of Hitachi’s Newton Aycliffe plant has been secured, with a landmark deal due to be announced by Prime Minister Sir Keir Starmer tomorrow - a major victory for a campaign by The Northern Echo.

While full details of the agreement will not be revealed until Friday, The Echo understands the jobs and livelihoods of the site’s 750 workers will be saved.

The train-building factory, which this newspaper campaigned to bring to County Durham 13 years ago, had been facing an uncertain future due to an impending gap in its order book.

The concerns prompted the re-launch of The Northern Echo's Keep Hitachi on Track campaign in March, and the plight of the manufacturer became a major issue in the run-up to the July General Election, with several senior Labour politicians including Sir Keir Starmer and then Shadow Transport Secretary Louise Haigh giving their support.

They claimed Hitachi’s future could be secured "with the stroke of a pen" by the Conservative government, but other than confirmation that talks were ongoing, no firm resolution appeared to be on the table.

It had been feared that last week’s resignation of Ms Haigh as Transport Secretary could slow down any agreement, but after months of campaigning by this paper amidst uncertainty - we can say it isn't the end of the line for Hitachi.

Writing exclusively for The Northern Echo, Sir Keir confirmed that a deal has now been sealed, with full details to be announced tomorrow (December 6).

"In April, I visited the Hitachi manufacturing plant. I spoke to the workers there who were staring down the barrel of hundreds of devastating job losses,” said the Prime Minister.

"And I promised them that, if we were elected, a Labour government would work with them to secure their jobs and the future of the industry.

"It’s a promise I made not only to those workers but also to The Northern Echo, which has campaigned tirelessly. I meant that promise.

"Today, my Labour government will announce a deal that will secure the future of Newton Aycliffe, uplift our industrial heartlands, and boost rail services for passengers across the UK."

He added: "The success of our industrial heartlands is the success of our nation. So we’re revitalising our railway industry.

"Our trains used to be the envy of the world. We laid the tracks for others to follow. This government is going to return our railways to that golden era once more.

"We’re treating those who build our infrastructure with respect and putting the passengers who use it first."

Reacting to the news, Alan Strickland, Member of Parliament for Newton Aycliffe and Spennymoor said: “I'm incredibly proud of the campaign to secure the future of Hitachi Newton Aycliffe.

“This has been my top priority, which I’ve been working tirelessly with our Labour Government and Labour Mayor to deliver.

”I’m delighted by the progress we’ve made and the difference this will make to my community.

“Where the Conservatives failed to act, Keir Starmer and Labour have led the fight for jobs at Hitachi.”

North East Mayor Kim McGuinness has also expressed her delight at the news - praising the "powerful North East voice" of The Northern Echo and its readers.

She said: "Immediately after the General Election I wrote to the Prime Minister with a set of asks to back North East workers and business. Hitachi was top of that list.

"I’m pleased the Government has listened and recognises the importance of Hitachi to our region: not just the direct jobs, but the supply chains it supports and the massive potential to be a leader in the future of rail technology.

"Today we can celebrate, and look to the future with optimism. We know there is still work to do but we are a powerful North East voice and steadfast behind us along the way: the Northern Echo and its loyal readers.

"I’ll always fight for the North East, for our workers, for our industry – and to create more opportunity for people living here.


"Today shows the power of what we can achieve together united behind our shared vision."

Gavin Foster, editor of The Northern Echo, added: "This incoming announcement from the government is a relief to not just hundreds of workers at Hitachi but also for Newton Aycliffe and the rest of the North East.

"Here at The Northern Echo, we have campaigned alongside MPs and senior officials tirelessly to Keep Hitachi on Track - it has truly been a long time coming and we are delighted to see this come to fruition.”
The only really relevant line:
Sir Keir confirmed that a deal has now been sealed, with full details to be announced tomorrow (December 6).
 
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JonathanH

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There is also a piece written by Keir Starmer which isn't behind a paywall but is very absent on facts.

https://www.thenorthernecho.co.uk/news/24774990.keir-starmer-pledges-save-hitachi-landmark-deal/

In April, I visited the Hitachi manufacturing plant. I spoke to the workers there who were staring down the barrel of hundreds of devastating job losses. And I promised them that, if we were elected, a Labour government would work with them to secure their jobs and the future of the industry.

It’s a promise I made not only to those workers but also to the Northern Echo, which has campaigned tirelessly.

I meant that promise. Today, my Labour government will announce a deal that will secure the future of Newton Aycliffe, uplift our industrial heartlands, and boost rail services for passengers across the UK.

The last government sat on their hands and failed to act.

They left people’s lives and livelihoods in limbo. This government has been working from day one to use the heft of government to solve problems, not create them. We’ve been getting people around the table to have the hard conversations that have been ducked for too long. This approach is working – we’ve avoided strikes, saved jobs, protected businesses and begun to improve our rail services for passengers too.

I know that this is about more than good jobs – it’s about pride in what you make. Knowing that your hard work is connecting the nation and leaving a lasting legacy. It’s about the identity of proud working people, and a community who have lived and worked together for years.

The success of our industrial heartlands is the success of our nation. So we’re revitalising our railway industry. Our trains used to be the envy of the world. We laid the tracks for others to follow. This government is going to return our railways to that golden era once more. We’re treating those who build our infrastructure with respect and putting the passengers who use it first.

This week we announced that South Western Railway will be the first rail operator to return to public ownership next year. This is the beginning of our plan to put services back in the hands of the public. We’ll save money that can be reinvested in our services, and improve services after years of delays, disruptions and cancellations.

By creating Great British Railways, we will reform our railways to modernise working practices, make tickets simpler and fairer, deliver a better service for passengers and a better deal for taxpayers.

But the people who work on our railways deserve security, dignity and respect at work. That’s why we’re delivering the biggest uplift to workers’ rights in a generation. We’re ending fire and rehire, scrapping exploitative zero-hours contracts and protecting maternity and paternity leave. We’re increasing the National Living Wage, which will put an extra £1400 a year in the pockets of working people. And we’re protecting the triple lock for those who have worked hard all their lives.

The new Labour MP for Newton Aycliffe and Spennymoor, Alan Strickland, and Labour Mayor for the North East, Kim McGuinness, have made Hitachi their absolute priority. Because after 14 years of Tory mismanagement, it’s communities like this that are paying the price of broken public finances and crippled public services.

In the face of that shocking inheritance, Labour will always stand with working people. That’s why we set out our new Plan for Change yesterday. These are ambitious milestones that will deliver real improvement to people’s lives. We’re determined to raise living standards across the country, rebuild Britain with 1.5 million new homes, end the hospital backlogs, put 13,000 police back on the beat, and give every child the best start in life.

It is Labour that cares about the good, well-paid jobs in the North East. We’re getting on with the job - relentlessly focussed on delivering for working people.
 
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bcarmicle

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I thought the extra 345 order was meant to save the factory, and why that order was placed. Was that wrong?
 

800001

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If true, and it sounds like it is and not rumour - it is absolutely fantastic news.
Attaching an image of tomorrows front page, image taken from a tweet by Colin Stoddart from The Northern Echo.

 

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TheGrew

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The boom-bust of train purchasing is the bigger problem here partly it seems because it is left to the last minute to replace fleets.
 

JonathanH

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Keir Starmer is due in Edinburgh today, so not clear when the announcement is coming. Would have thought it would have happened by now if it was going to be a morning announcement. A late afternoon visit would be a bit odd.
 

HSTEd

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Yet another train order placed, not because we actually want the trains, but because the government is terrified of bad headlines about a plant closure.

So we will continue to have a vast oversupply in railway vehicle construction capacity and continue to pay over the odds for new trains as a result.
 

birchesgreen

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Yet another train order placed, not because we actually want the trains, but because the government is terrified of bad headlines about a plant closure.

So we will continue to have a vast oversupply in railway vehicle construction capacity and continue to pay over the odds for new trains as a result.
Well it wouldn't be a problem if stuff which needed replacing was replaced by these new trains.
 

hacman

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The train-building factory, which this newspaper campaigned to bring to County Durham 13 years ago

Yes, I'm sure that without The Northern Echos contributions, Hitachi wouldn't have even considered the region...
 

HSTEd

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Well it wouldn't be a problem if stuff which needed replacing was replaced by these new trains.
Well it is still a problem, because we have too little demand to sustain the multiple train manufacturing complexes we now have.

Even leaving aside the tube associated plant at Goole, we now have plants for Hitachi, CAF and Alstom.
The entire UK passenger rail vehicle market is under 500 vehicles per year, even assuming a continuous replacement programme. (The fleet is ~16000 vehicles).

We probably have enough work for one reasonably sized train plant, not three. We end up paying over the odds to have badly utilised factories sit around to avoid negative headlines.
 

DarloRich

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Yet another train order placed, not because we actually want the trains, but because the government is terrified of bad headlines about a plant closure.
But we do want the trains. XC, GC, Scotrail all need more modern trains and they may as well be Hitatchi as the class 800 family is becoming the modern standard fleet
Yes, I'm sure that without The Northern Echos contributions, Hitachi wouldn't have even considered the region...
They were very vocal in the campaign. Very.
 
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brad465

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Well it is still a problem, because we have too little demand to sustain the multiple train manufacturing complexes we now have.

Even leaving aside the tube associated plant at Goole, we now have plants for Hitachi, CAF and Alstom.
The entire UK passenger rail vehicle market is under 500 vehicles per year, even assuming a continuous replacement programme. (The fleet is ~16000 vehicles).

We probably have enough work for one reasonably sized train plant, not three. We end up paying over the odds to have badly utilised factories sit around to avoid negative headlines.
Have you included freight in this, as decarbonisation will demand more diesels be replaced with at least hybrid locos? After that perhaps we should consider having a bigger export market.
 

zwk500

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Well it is still a problem, because we have too little demand to sustain the multiple train manufacturing complexes we now have.

Even leaving aside the tube associated plant at Goole, we now have plants for Hitachi, CAF and Alstom.
The entire UK passenger rail vehicle market is under 500 vehicles per year, even assuming a continuous replacement programme. (The fleet is ~16000 vehicles).
There's a very good argument the existing fleet is too small. We should also be looking to expand light rail systems which will these manufacturing facilities could supply.
We probably have enough work for one reasonably sized train plant, not three. We end up paying over the odds to have badly utilised factories sit around to avoid negative headlines.
Of course, if we take a joined up view, GB train manufacturing need not manufacture solely for the GB network. Train manufacturers could follow an Airbus approach and distribute component manufacturing to best utilise a local skill set, or simply compete for orders overseas. Or a UK-based factory could compete for European purchase tenders.
 

JordR

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But most European trains will not fit the loading gauge here, will the only option be road and ship to transport them and will that make it cost prohibitive?

Is it less of an oversupply and more a supply incorrectly balancing the UK needs, e.g. DMU/EMU, express/commuter etc? On the one hand several TOCs are using Sprinters daily that date from as far back as 1984 whilst TPE decided carriages built in 2017 were surplus to requirements not long ago.
 

LNW-GW Joint

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Was Newton Aycliffe actually going to close, as opposed to its workload being reduced?
They have the HS2 contract after all (with Alstom doing the fitting out/bogies).
HMG having found work for Derby, presumably Newton Aycliffe would be entitled to similar support.
Hitachi has also shown it can move work around, with the 802s being assembled in Italy.
Made me laugh when Starmer talked about the trains being Briitish-built, when most of the valuable components come from Japan/Germany.
 

LYuen

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Yet another train order placed, not because we actually want the trains, but because the government is terrified of bad headlines about a plant closure.

So we will continue to have a vast oversupply in railway vehicle construction capacity and continue to pay over the odds for new trains as a result.
Quite a lot of operators need additional capacity / rolling stocks.
Northern, TfW, EMR, XC, etc. TPE retired their NOVA 3 without a replacement.
Many trains built by BREL and Metro-Cammell are due to be replaced soon.
Still, new rolling stocks are ordered for operators which is generating revenue. No improvement to operator like Northern which the fare is cheap but expensive to run.

The construction capacity in the UK is just enough. It is the fluctuation of orders that is causing a problem.
Some GWR class 802s were built in Italy because the Newton Aycliffe plant was at capacity

Was Newton Aycliffe actually going to close, as opposed to its workload being reduced?
They have the HS2 contract after all (with Alstom doing the fitting out/bogies).
HMG having found work for Derby, presumably Newton Aycliffe would be entitled to similar support.
Hitachi has also shown it can move work around, with the 802s being assembled in Italy.
Made me laugh when Starmer talked about the trains being Briitish-built, when most of the valuable components come from Japan/Germany.
There will be a few gap years between the orders. A company with a few years of no business will close down.
Hitachi and Alstom claimed they can't built stock for Europe in the UK as they can't ship the stock to Europe (loading gauge issue).
But ultimately it is a cost issue. An oversea manufacturer closing down their secondary factory in the UK isn't a big deal for them, but is a big deal for their employees in the UK.
We are doomed to suffer since the close down of BREL and selling off of MCCW.
 

Mikey C

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Yet another train order placed, not because we actually want the trains, but because the government is terrified of bad headlines about a plant closure.

So we will continue to have a vast oversupply in railway vehicle construction capacity and continue to pay over the odds for new trains as a result.
Nothing new though. 50 years ago The London Underground 72 stock was ordered to keep Metro-Cammell in business, while the recent order for extra 345s kept Derby alive.

And of course the complication of keeping all these factories alive, is that other than small top up orders, you can't just give one factory work without affecting other UK plants.
 
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