Rail renovation businesses sold
Alstom has announced plans to sell its UK train heavy renovation businesses located in Glasgow and Greater London to Railcare.
Alstom is to sell its UK train heavy renovation businesses located in Springburn, Glasgow and Wolverton, Greater London to Railcare. The company hopes to complete the transaction by the end of the first quarter 2007.
Earlier in 2006 Alstom conducted a review of its UK train heavy renovation businesses, which have annual sales of approximately €60m (representing 15% of UK transport sales) and 430 employees at sites in Springburn and Wolverton.
Alstom concluded that this activity is similar in nature to rolling stock manufacturing, which the company no longer carries out in the UK, and that its profitability profile is not in line with its targets.
Railcare is a group of personal investors operating in the rail market, including the general manager of the Wolverton site who will continue to manage the businesses in the future.
When the sale is completed, Alstom’s Transport activities in the UK will be concentrated in the maintenance, electrical renovation, parts and signalling markets. Alstom Transport will also continue to bid for new rolling stock projects in the UK that will combine local project management and engineering skills with its European centres of manufacturing excellence.
Once the transaction is concluded, Alstom Transport will employ approximately 1600 people at some 20 locations across the UK
. Alstom’s existing Transport activities in the UK
include maintenance of one of the world’s biggest Pendolino fleets. Alstom also maintains the Northern and Jubilee Line fleets on the London Underground fleets for Tube Lines and successfully introduced, ahead of schedule, 59 new cars and four new trains onto the Jubilee Line.