Alstom's CrossCountry deal is brilliant - but it's time to put the supply chain in the picture

Alstom's CrossCountry deal is brilliant - but it's time to put the supply chain in the picture

Speaking to my local radio station this morning, I joined in with the city’s happiness at the news of how Derby’s famous Alstom factory has landed the order to refurbish CrossCountry’s Voyager fleet, writes Malcolm Prentice.

I say famous, because nobody in the industry or in the region – and, perhaps, across the UK – could be unaware of Litchurch Lane’s status as the last place in the country where trains are built.

And nor could they be unaware of how its proud history of train manufacturing nearly came to an end last year, when a lack of orders between now and the commencement of a contract to build the new HS2 trains in mid-2026, in partnership with Hitachi, meant there was no work for its 1,500 workers to do.

So, understandably, the news of the CrossCountry deal, which is worth £60m, was eagerly received in the same way that the deal which appeared to save the factory’s back – a £370m deal to make trains for the Elizabeth line – was warmly welcomed when it was announced in June.

The CrossCountry deal is undoubtedly brilliant news. But it isn’t a huge job, involving 100 members of staff working to refresh the interior and exterior of some 20-year-old trains, including new seats, tables and flooring, improved lighting, a new passenger counting system and new livery.

As a result, alongside the happiness, I’m in no doubt that it marks a new beginning in the story of Litchurch Lane and this for me prompts a number of questions as to what the new future will look like.

Because while this is welcome, there are still gaps in the order book. These orders are some way ?off starting, so there are still challenges for Alstom to overcome before everyone can really breathe easy, not least those in the supply chain.

So I would want to ask these questions less for myself or my company – MTMS is a proud member of the local rail community but we are not a part of the supply chain – but for those Derby and Derbyshire firms who do rely on the factory for their livelihood.

We know that some companies in the supply chain have gone out of business and others will be looking for work elsewhere, so my first question would be what can Alstom say to those companies which remain – or which would want to come back?

We also know that there have been voluntary redundancies at the site and that many of those have taken skills with them that will not have been replaced. Is that going to shape the kind of work the factory can take on in the future?

And, thirdly, we also know that Alstom is an overseas-owned company with sites in other countries, so Litchurch Lane is, understandably, subject to the kind of financial decisions that large companies have to make in order to remain profitable.

This is where we are, which is why my challenge to Alstom is reach out to the supply chain to put them in the picture.

They need say what the plan is and what the future holds and be prepared to make whatever commitment the supply chain needs. We are not out of the woods yet, and it shouldn’t be that the supply chain, on which so much relies, is left in the dark.

It is no exaggeration to say that rail is important to Derby. Its unique place in the history of rail travel was an important part of its successful campaign to become the home of the Great British Rail HQ, but it’s work and money, not words and heritage, that will pay everyone’s bills.

This is a good day for the city, but challenges remain, and if I was a supplier, I’d want to see more assurance that the new chapter at Alstom is something I can buy into.

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David Shipley

Associate Director, IPEX Consulting

6 个月

Not sure the article is completely accurate: “nobody in the industry or in the region – and, perhaps, across the UK – could be unaware of Litchurch Lane’s status as the last place in the country where trains are built”. What about Newton Aycliffe (Hitachi), Goole (Siemens) and Newport (CAF)? Don’t they count?

Dave Brookes

Head of sales & business development at Grinsty Rail and Director of the Rail Forum

6 个月

Be good to see Alstom supporting companies that have supported them.

Bruce Spencer

Strategic Lead

6 个月

Malcolm , incite full, clear and asks the right questions - unencumbered by emotion but driven by fact. Great article and it begs answers…..

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