Alstom, the UK’s largest rail assembly factory, is considering job losses at its Litchurch Lane factory in Derby due to a gap in orders from early next year. The site has no confirmed workload beyond the first quarter of 2024, and the BBC understands that 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 to ensure a sustainable future for the factory, but no committed way forward has yet been found.
Although the start of work on trains for HS2 is scheduled at the plant in late 2026, this has been delayed, along with the wider project, and the potential job losses are a cause for concern among local companies in the factory’s supply chain. Many firms that supply every item needed for the construction of the trains will suffer, according to Malcolm Prentice of Swadlincote-based firm MTMS. He estimated that a vast number of businesses around Derby may be at risk of failing. They may not wait for the next order, and there could be a lot more job losses, he warned.
The uncertainty surrounding jobs at Litchurch Lane comes following a commitment made by Alstom to the government in March 2021 to create 400 jobs and build a new £25m site in Widnes, Cheshire. Alstom said at the time that the pandemic had emphasised the need for sustainable and environmental transport. In December, the company pledged to have net-zero emissions by 2025.
Alstom has now said that it remains open-minded as to the future of non-production functions at Litchurch Lane and is considering potential alternative uses for the Derby site. The company plans to begin an extensive review of options and involve all stakeholders in the process.
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