Hitachi warns: Future of UK train factory in danger

Hitachi, the Japanese technology conglomerate, is sounding the alarm: The existence of its British train factory in Newton Aycliffe, northern England, is threatened if the government does not invest in new infrastructure projects. Toshiaki Higashihara, Chairman of Hitachi, stated to the Financial Times that without the resumption of the northern segment of HS2 or other significant programs within a year, the 750 jobs are at risk. Higashihara clarified that the production volume would drastically decrease if the route section is ultimately canceled. "The problem becomes larger the more we have to think about personnel capacities," said the chairman. Former Prime Minister Rishi Sunak had already paused the project due to costs, causing outrage among regional leaders and businesses. Hitachi could particularly benefit from a resumption. Together with Alstom, the company received the contract for 54 train carriages for the first phase of the project. However, further orders for the second phase are still pending and could only occur in several years. The incumbent Prime Minister, Sir Keir Starmer, will soon announce that a new order of 500 million pounds to First Group for 70 train carriages should secure the future of the factory. However, industry experts warn that this order alone cannot fill all production gaps. Higashihara emphasized that he has spoken with Starmer about the project and believes it could be revived under the Labour government to promote economic growth and regional revitalization. Furthermore, Hitachi is also exploring alternative plans, including replacing diesel engines with batteries to adjust the workload in Newton Aycliffe. The British rail industry is currently struggling with political changes, rising costs, and a lack of new orders. The Newton Aycliffe factory opened in 2015 and contributed to the economic stabilization of a region affected by job losses. Nevertheless, Hitachi conducted an asset impairment of the facility at the end of 2023, sparking speculation about a possible closure. Meanwhile, a statement from the British Department for Transport remained forthcoming.