£1.7 billion boost for Bombardier in Derby
Updated: Feb 26, 2021
A CONSORTIUM led by Bombardier Transportation has confirmed a deal with the Egyptian Government to build two new monorails, with the support of a guarantee from the British government which is worth £1.7 billion. The funding will allow a monorail car production line to be created at Litchurch Lane in Derby. The monorail cars will be the first rail vehicles to be built at Derby for export since Bombardier supplied the Gautrain fleet for lines in the Johannesburg area, based on the Electrostar series, more than a decade ago.
International trade secretary Liz Truss said the government guarantee will support highly skilled jobs in Derby. The monorail production line will need 100 staff, and create more jobs in the supply chain, much of which is based in the East Midlands. The news came as the UK hosted the Africa Investment Conference, the first of its kind since the UK left the European Union.
Liz Truss said: "Trade is an incredibly powerful way to propel growth and create jobs as we recover from the pandemic. This deal shows why we are so determined to get businesses to grasp these opportunities and take advantage of the support available from Government.
‘One third of our economy is exports. That’s why support from our export credit agency is vital. It can help the UK get a bigger slice of the global economic pie, secure jobs across the country and make the most of our newfound independence as a trading nation."
The president of Bombardier Transportation in the UK and Ireland, Matt Byrne, added: "The Cairo Monorail export win, against international competition, shows that that the UK rail sector can fight and win in key growth markets such as sustainable transport."
The deal has been completed just a few days before Alstom completes its acquisition of Bombardier on 29 January.