Hitachi CEO for Rail has one eye on Brexit outcome
Newton Aycliffe may be busy, and Hitachi may be bidding for more work, but the company’s Global CEO for Rail, Alistair Dormer, has said that the outcome of Brexit could have a serious impact on its business plans.
Speaking to RAIL on August 17, on board the first run of a Great Western Railway Class 802, he said that the County Durham site has undergone a transformation over the past six months, during which time it has had to deal with a number of supplier issues.
“We are bidding for East Midlands and West Coast Partnership deals,” he said, adding that the offering for the former would be similar to the Class 802s, but that the vehicles would have to be shorter (he cited confidentiality as a reason not to expand further).
Currently the final GWR Class 800/3s are being completed at the site, followed by LNER Class 800 and ‘801’ Azumas, as well as the ScotRail Class 385s. However, after that the order book is empty. Speaking on the future of the facility, Dormer said: “We are looking at building for further afield, but much depends on the outcome of Brexit. We don’t want tariffs on bringing things in and out of Europe.”
Currently, Hitachi uses friction stir welding at its Kasado and Pistoia factories. The company had hoped it would be brought to the UK, but so far that has not happened. Dormer confirmed: “I’d like to see it at Newton Aycliffe.”
Dormer also confirmed that if a legal challenge by the joint venture of Bombardier and Hitachi to overthrow the decision to award the Deep Tube Upgrade contract to Siemens was successful, then the work would be split 50/50 between Newton Aycliffe and Derby Litchurch Lane. Likewise, if the JV between the two companies is successful with its bid for the HS2 trains deal, then that would also be split on similar terms.
Dormer said that the supply chain that supports Newton Aycliffe has been supporting construction of the ‘802s’ in Pistoia, Italy.
“GWR wanted the trains as fast we could deliver them, and Newton Aycliffe was full at that stage. It was good integration for the business and we changed processes.”