Bombardier wins $383M Italian train deal
Last Updated: Wednesday, October 14, 2009 | 12:39 PM ET
CBC News
Bombardier Transportation has won a $383-million US contract to provide 100 of its E464 electric locomotives to Italy's Trenitalia. (Bombardier Transportation) Bombardier Inc. has signed an order to supply 100 of its E464 electric locomotives to Italian train firm Trenitalia for the equivalent of $383 million US.
Delivery of the locomotives is scheduled for between 2010 and 2012.
With the deal, Trenitalia will become one of the largest single vehicle-type fleets in Europe. Single vehicle-type fleets can offer considerably reduced operational and maintenance costs, the Montreal-based Bombardier says.
The rail line already runs 638 Bombardier locomotives on its network, and Wednesday's deal includes an option of up to 50 more on top of the 100 included in the agreement.
Last month, Bombardier signed a separate $190-million US deal to supply trains to two German tram operators. The company also signed a landmark $4-billion deal to supply high-speed trains to the Chinese market in September.
On the aerospace side, Bombardier also signed a $730-million deal to sell 22 jets to the parent company of American Airlines last month.
The locomotives for the Italian deal will be manufactured in Vado Ligure, Italy, while the carbodies and propulsion equipment will be supplied respectively by Bombardier’s sites in Wroclaw, Poland, and Trápaga, Spain, the company said in a release.
Bombardier employs 700 people in Italy.
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