Hitachi praises major deal while rail workers still worry

In the United Kingdom, the Hitachi company recently announced a significant £500 million contract with FirstGroup, which will involve the production of 14 new trains at their Newton Aycliffe facility in County Durham. This announcement comes at a crucial time for the plant, where uncertainty regarding employment had risen due to decreasing orders. The contract is expected to secure jobs for around 700 employees and alleviate concerns regarding the factory's future. This deal was described as a 'positive step forward' by Hitachi's UK and Ireland director, Jim Brewin, who expressed appreciation for community support and the hard work of local teams. The investment promises not only immediate job security but also opportunities for future projects, with an option for an additional £460 million in investment depending on market demands. However, there remain challenges that could jeopardize this positive momentum. Toshiaki Higashihara, Hitachi’s chairman, indicated the potential risks posed by the cancellation of the northern leg of the HS2 rail project, previously announced by the former prime minister, Rishi Sunak. Higashihara cautioned that if Labour did not reinstate the HS2 northern leg within the year, there would be fewer projects for the Newton Aycliffe plant, which would undoubtedly impact job security. Sir Keir Starmer, in response to these developments, has asserted that the last government left the rail manufacturing sector in disarray. He emphasized his commitment to ensuring there would be no gaps between contracts, alleviating the anxiety that had been prevalent among workers. Both he and his government are focusing on a long-term railway strategy that prioritizes operational stability and collaboration with the private sector to ensure job security and industry growth.