Alstom: Train manufacturer puts 1,300 jobs at risk in Derby

The firm was relying on large orders to supply HS2 but these have been delayed, along with the wider project

More than 1,300 jobs have been put at risk at the UK's biggest rail assembly factory.

Alstom is consulting on job losses at its Litchurch Lane factory in Derby, which has no confirmed workload beyond the first quarter of 2024.

Work on trains for HS2 is scheduled to start at the site in late 2026 but there is a gap in orders from early next year.

The BBC understands 550 permanent jobs and 780 temporary jobs are at risk.

An Alstom spokesperson said the company had been working with the government over the past six months in a bid to secure a "sustainable future" for the factory.

"No committed way forward has yet been found and therefore it is with deep regret that we must now begin to plan for a significant reduction in activity at Derby by entering a period of collective consultation on potential redundancies at Litchurch Lane," they said.

"We will fully support our dedicated colleagues during this exceptionally difficult time.

"We look forward to fulfilling our commitments on HS2 and successfully competing for rolling stock opportunities across the UK in the future.

"We remain open-minded as to the future of non-production functions located at Litchurch Lane and to potential future alternative uses for the Derby site.

"We will begin an extensive review of options, and will fully involve our stakeholders in this process."

Image source, PA Media

Alstom's Litchurch Lane factory in Derby has no confirmed workload beyond the first quarter of 2024

Derby City Council leader Baggy Shanker said: We've been informed by Alstom this morning that after months of talks with government, they must now plan to end the production of rolling stock within the city and will be starting a redundancy consultation affecting Derby manufacturing staff, coinciding with the end of current projects.

"The Litchurch Lane factory site is a unique asset for Derby and the UK and we understand the impact these supply chain job losses will have on our residents and the wider region.

"We've been working closely with Alstom, Unite and senior government officials to explore potential resolutions to the current situation since the announcement of possible job cuts back in September and we're saddened to hear that a solution has not yet been possible.

"Minsters really need to commit and focus on this vital industrial sector. To date I'm disappointed that no minister has agreed to speak to us on this matter."

Margaret Beckett, MP for Derby South, said she was "desperately disappointed" by the news.

"Everybody has been trying for weeks and months to get the government to realise how difficult the situation is," she said.

"The prime minister talks about making decisions for the long-term, but that's precisely what they are not doing. There isn't even any work for which Alstom can compete. It's very bad news."

The Department for Transport (DfT) has been approached for comment.

Council leader Baggy Shanker said the authority "stands with" Alstom's workers

The news has prompted concern from local companies that form part of the factory's supply chain.

Malcolm Prentice, who runs Swadlincote-based firm MTMS said: "There's a vast number of businesses round Derby that supply every item that's needed for the construction of the trains and they're going to suffer.

"We're going to find a lot of businesses round Derby will now go to the wall. They won't be able to wait for the next order and there's going to be a lot more job losses.

"You can double it and keep going."

Sim Harris, managing editor of Rail News, said he feared the number of job losses across Derbyshire and the wider East Midlands could be higher than the current number.

"The cancellation of HS2 north of the West Midlands to Crewe and Manchester certainly is an issue because the eventual fleet will now inevitably be smaller," he said.

"And the doubt over the size of the fleet will be reducing future income for Litchurch Lane."