Today (6 December 2024), the Government announced a £500 million rail manufacturing deal to secure the future of Hitachi Rail’s Newton Aycliffe plant, protecting hundreds of skilled jobs across the North East and providing long-term certainty for one of the region’s most important industrial sites.
The agreement, involving FirstGroup, Angel Trains and Hitachi, will see 14 new five-car trains built at the plant, helping bridge a critical gap in the factory’s order book and safeguarding the workforce while future contracts come on stream. The announcement followed direct government engagement with the company and comes as part of a wider effort to stabilise rail manufacturing and end the damaging boom-and-bust cycle inherited from previous years.
The announcement follows months of sustained engagement by North East Labour MPs, including Luke Myer MP. Shortly after being elected, Luke visited the plant to hear directly from workers about the importance of the site for high-quality local jobs and national infrastructure.
He then joined colleagues from across the region in writing to ministers, pressing for urgent action, meeting Hitachi’s UK leadership in Parliament, and securing written assurances from the Rail Minister that government would act to protect the plant and build a long-term pipeline of work.
Speaking at the site, Prime Minister Keir Starmer said the deal showed the impact of a more active approach from government:
“Our Plan for Change has set out ambitious milestones that will deliver real improvement in people’s lives – raising living standards across the country. That means taking grown-up approach to business and using the heft of Government to solve problems, not create them. Getting people in the room to have the hard conversations which have been ducked for years. That approach is paying off. Not only has it saved jobs, but it has given business the certainty and stability they need to thrive.
“Today’s announcement is a case in point. We helped secure a deal that will help protect hundreds of jobs, keep this business ticking, and improve rail services. I made a promise to the workforce of the Newton Aycliffe factory and today, I’m delivering on that promise.”
Transport Secretary Heidi Alexander added that the agreement demonstrated a new commitment to UK rail manufacturing:
“This Government is determined to rebuild our broken railways – which includes taking action to create a stable investment environment for our critical UK rail manufacturers.
“This deal will bring significant benefits to the North East, and we’re committed to working closely with the entire sector so that it can continue to support jobs and growth across the country and help deliver a railway fit for the 21st century.”
Luke Myer MP said:
“This deal matters because it gives working people the certainty they deserve. From the outset, I’ve been clear that this site is a strategic national asset, not just a local factory. Sustained pressure, early engagement, and a government willing to get round the table have made the difference here. There is more to do to secure the long-term pipeline, but today is an important step in backing skilled jobs, British manufacturing, and a serious industrial strategy for rail.”
Jim Brewin, Chief Director of UK & Ireland at Hitachi Rail, said:
“This contract is a positive step forward, and just recognition for the hard work and patience of our teams across the Hitachi Rail UK business over recent years. We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British built trains.
“Equally, we owe a debt of thanks to the North East Mayor Kim McGuiness and other local MPs who have worked tirelessly in support of this private sector investment.”