U.K. government picks Bombardier for rail contract worth US$1.6 billion

MONTREAL – Bombardier Inc. (TSX:BBD.B) is in line to get a US$1.6-billion contract to supply trains and a depot for London’s transportation system.

The British government announced Thursday that it intends to award a billion-pound contract to Bombardier, after a 10-day waiting period.

Under the deal, Bombardier’s rail division will supply 65 trains and a maintenance depot for Crossrail.

Bombardier confirmed it has been notified of the Crossrail decision and said its Aventra trains have been designed and developed in the U.K.

The trains will be manufactured and assembled at a Bombardier plant in Derby, England, a long-time centre of rail manufacturing.

Bombardier says it has 1,600 employees doing design, engineering and manufacturing work at its Derby location.

The U.K. transportation department said the contract will support 760 manufacturing jobs and 80 apprenticeships, with about 74 per cent of the money to remain in the British economy.

Construction of the maintenance depot at Old Oak Common will support 244 jobs, plus 16 apprenticeships.