Shepherd wins £82m rail factory contract
SHEPHERD has won the £82m contract to build Hitachi Rail Europe’s new manufacturing plant in County Durham.
Around 150 jobs will be created during the construction phase and building work will start on site in Newton Aycliffe later this year with completion scheduled in mid-2015.
The Department for Business, Innovation and Skills has invested £4m under the Grant for Business Investment scheme. When the factory is in full production, 730 people will be directly employed by Hitachi Rail Europe.
Hitachi Rail Europe is working with developer Merchant Place Developments (MPD), who are leading the project to build and fit out the factory. Jointly Hitachi and MPD have appointed the Shepherd, to build the plant.
Secretary of State for Business, Vince Cable, said: “Hitachi’s decision to base its European factory in Newton Aycliffe shows the UK is an attractive place for international businesses to invest and grow. The factory will be a great boost to the North East economy, creating over 700 jobs and bringing a long tradition of rail manufacturing back to the region.
“With increasing numbers of passengers set to use our railways over the coming years, we also need to train and encourage more young people to enter the industry. The Government has invested in a new rail training academy in Northampton which will address skills shortages in traction and rolling stock. We are also creating a new Rail Supply Chain Forum to help British companies to win work both here and abroad.”
Secretary of State for Transport, Patrick McLoughlin, added: “The Intercity Express Programme is part of the government’s commitment to investing in our nation’s infrastructure. Once they are on the network they will slash journey times, boost capacity to many of our cities in the South West and up the East Coast to Scotland.
“Building theses new trains is supporting jobs and manufacturing across the UK. Like our plans for a national high speed rail network, these new faster trains will help stimulate economic growth by improving connections between our major cities.”
Mark Perkins, chief executive for York-headquartered Shepherd Group Built Environment, said: “We are delighted to have been awarded the contract to build this landmark development in the North East, which will have a momentous effect on the prosperity of the region, as the biggest investment into the area for more than 20 years.”
