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Alstom Shares Gain Amid EUR1.2 Billion UK Electric Trains Deal

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Alstom Shares Gain Amid EUR1.2 Billion UK Electric Trains Deal

Shares in Alstom (ALO.PA) rose on Friday morning after the French rail and transport equipment company unveiled contracts worth 1.2 billion euros to build the UK's first mainline battery-electric trains.

Under a 930 million-euro deal signed with TransPennine Express, Alstom will develop 29 five-car battery-electric multiple units based on its Adessia Stream platform. The trains will be manufactured at the company's Litchurch Lane Works factory in Derby, UK.

Alstom also signed long-term maintenance contracts worth 230 million euros, covering an initial eight-year period with the potential for a further eight-year extension.

The trains will be used on routes across northern England, with manufacturing expected to begin in 2028 and deliveries starting in 2032.

"Beyond the benefits to passengers, this investment will support more than 350 highly skilled jobs in Derby and over 5,500 roles across our UK supply chain," said Rob Whyte, managing director for the UK at Alstom.

UK Secretary of State for Transport Heidi Alexander said the deal "will deliver growth, jobs, opportunity and better transport links for generations to come."

Alstom's shares were up more than 2% in early trading in Paris.

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