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North East potential for hundreds of jobs

The region’s strong history with Japanese companies such as Nissan could help it secure a train assembly plant that will create hundreds of jobs.

1,400 Hitachi express trains and coaches are to be built as part of a £7.5bn contract.

There are five sites shortlisted by a consortium, including the Tyne Marshalling Yard, in Lamesley, Gateshead, one in Sheffield, another in Leeds and two in the East Midlands.

Sir Stephen Gomersall, chief executive of Hitachi Europe, has visited the Gateshead site and pointed out the region’s strong links with Japanese companies.

The consortium, Agility, which also includes construction group John Laing and Barclay Private Equity, is the Government’s preferred bidder for the £7.5bn contract to build the trains and coaches, which are set to enter service on the East Coast Main Line in 2013.

It would initially employ 200 people, rising to about 500, with more jobs created in the supply chain.

Sir Stephen said all five shortlisted sites met basic criteria such as accessibility.

He added: “We know the North East is undoubtedly a good place for Japanese companies. “We will make our decision on the basis of all the different factors involved, but the availability of skills and infrastructure for the rail industry are two very important points.”

The consortium aims to select its site by next year. Sir Stephen was accompanied on his visit by Alan Clarke, the chief executive of development agency One North East.

Mr Clarke said he believed that workers in the region had a lot of the skills necessary for the plant, should the North East be chosen. He said: “At the moment we are towards the back end of the recession and it would be a sign of confidence for the future, for the region.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .