Alstom welcomes the selection of Derby as home of Great British Railways and publishes its economic impact report in UK
- Alstom UK & Ireland, as railway manufacturer in UK with its main factory in Derby, publishes its economic impact report of its presence in the UK
- Supported a contribution of £1 billion to the GDP of UK and Ireland
- Over 16,900 jobs supported directly and in the UK supply chain
- £850 million spent with UK & Ireland suppliers
- 85% of all suppliers based in UK & Ireland
21 March 2023 – Alstom, global leader in smart and sustainable mobility, welcomes the UK Government’s announcement today that Derby will be the home of Great British Railways (GBR), the new organisation that will act as the ‘guiding mind’ of rail in the UK and which will have an important role in helping put the rail supply chain on a financially stable footing for the long term.
Alstom, with its presence in Derby and in 34 other locations around the UK & Ireland, has also announced the benefit its presence brings to the UK economy with its economic impact report.
Based on its central role in the UK’s rail industry, delivering some of the biggest rail programmes in the country, Alstom announced that it supported the contribution of £1 billion to the GDP of the UK and Ireland in the financial year 2021/2022*. Its activities in the UK support some 16,900 jobs, many of them high-value engineering and manufacturing roles in the UK.
“The selection of Derby as the home of Great British Railways makes complete sense, as it has been the beating heart of Britain’s rail industry for over 200 years. Today, Derby is the home of the UK’s biggest and best-known train manufacturing projects, be it Elizabeth line for Transport for London, Aventra for seven of the country’s leading train operating companies, monorails for Egypt, or HS2” commented Nick Crossfield, Managing Director, Alstom UK & Ireland.
“Based in this great city, Alstom’s activity supports the contribution of over a billion pounds in GDP to the country annually and supports some 16,900 jobs. Having GBR in the city will seal Derby’s reputation as ‘Rail City’ helping to foster greater rail sector collaboration and attract the skills so vital to the future of rail in the UK,” added Nick Crossfield.
Economic impact
**EY’s analysis of Alstom’s activity in the UK and Ireland in financial year 2021-22 found that the company supported a contribution of over £1 billion to the GDP of the country. The breadth of the organisation’s activity meant that it supported 4,484 direct jobs*** and a further 12,416 indirect and induced jobs through its supply chain. Over £850 million was spent with 1,417 UK and Ireland suppliers, representing 78% of total procurement spend.
This in a financial period when it helped Transport for London complete the Elizabeth line track and signalling infrastructure in time for start of trial running of Alstom’s Class 345 Aventra trains on the Elizabeth line; delivered major signalling projects and began delivering the overhaul of Angel Trains and Avanti West Coast’s iconic Pendolino fleet in its Widnes facility, among other activities.
Future financial periods will see Alstom complete the delivery of 2,600 Aventra cars – the UK’s largest ever train building programme – deliver the two largest major signalling frameworks for Network Rail in Control Period 6 (CP6), in eastern and southern England, continue to support a large portion of the UK’s installed train fleet and prepare for the manufacture of 54 HS2 trains which will roll out of Derby.
With 78% of its total procurement spend in the UK and Ireland, Alstom supports British jobs, British innovation and world-leading British manufacturing. The company’s investment in the railways positively impacts upon other transport users and our wider society, economy and environment.
Sustainability impact
As global leader in smart and sustainable mobility, Alstom takes its work on decarbonisation of the value chain incredibly seriously, transitioning towards sustainable transport systems.
In this Economic Impact report, EY draws attention to Alstom’s role in rapidly decarbonising the transport sector in the UK, helping to make rail travel the default option for millions more people, as well as supporting a talent pipeline for the UK rail industry. 100% of energy used in owned Alstom sites is renewable and green, 99% of waste is recovered at these sites and up to 95% of every material used in manufacturing its trains can be recycled.
Creating a valuable employment pipeline, Alstom recruits over 100 new apprentices and graduates per annum and ensures growing diversity through ‘Voices’ groups and a biannual Equality, Diversity and Inclusion census.
The company also plays a wider role in its community with an engaged workforce supporting numerous community initiatives and the company contributing over £538,000 in philanthropic grants in the UK&I over the last five years through the Alstom Foundation.
Importance of Derby
Alstom has been part of the fabric of UK rail for almost two centuries. Its proud history in the country can be traced back to the Robert Stephenson & Co Works, manufacturer of Stephenson’s Rocket, in Newcastle and the famous 19th Century train factories at Derby and Crewe – both still operated by Alstom today.
Today, Derby is the home of Aventra – the UK’s largest train manufacturing programme for a generation – a Monorail export contract (the first export of UK rolling stock since 2008) to help Cairo decarbonise its public transport and will see all 54 HS2 trains roll out of its Derby factory later this decade.
As the UK continues to build back from the last few years, Alstom is once again at the forefront of the country’s next rail revolution. The company is supporting governments, train operators, rolling stock owners, infrastructure owners and maintainers to increase passenger numbers, improve railway reliability and raise revenue – while meeting decarbonisation targets.
*Data refers to financial year 2021/2022 which ran from April 1, 2021, to March 30, 2022.
** EY, also known by its former name Ernst & Young and Associates, is a financial audit and consulting firm.
*** FTE
