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Firms team up for £500M Tyne and Wear Metro contract bid

newcastle central station roof

Engineering firm Spencer Group and train manufacturer Hitachi are launching a joint bid for a £500M contract to build new trains and a maintenance centre for the Tyne and Wear Metro.

From 2022, the existing metro fleet is to be replaced with high technology trains and maintained at a newly-constructed site at Gosforth, Newcastle.

Both firms also worked together previously when Spencer Group upgraded existing East Coast main line rail depots for Hitachi’s new intercity trains.

Chief operating officer for manufacturing at Hitachi Ross Nagle said: “We are now working hard to secure more orders, so our investment in the North East economy will continue to be felt across the region and with our local suppliers.”

Managing director of Spencer Group Gary Thornton added: “Our partnership with Hitachi to bid for the contract with Tyne and Wear Metro builds on our successful relationship delivering major rail projects.

“Together we offer a compelling proposition of complementary engineering expertise that will deliver unrivalled benefits to the client and value to the economy of the North.”

The two firms are set to make attempts to leverage their track record in the North to ensure their bid is successful.

Hitachi has invested over £100M in its train factory in Newton Aycliffe in County Durham and has created more than 700 permanent jobs at the factory.

Meanwhile Spencer Group employs 300 people in the North, including at its headquarters in Hull.

Spencer Group has also delivered more than £85M of projects within the North East, including a biomass handling facility at the Port of Tyne, which created over 200 construction jobs for the region.

Earlier this year, five rail companies were shortlisted for a £360M contract to build and maintain rolling stock for the Tyne and Wear Metro.

In August of this year, local transport body Nexus also placed a notice in the OJEU for track renewal contractors.

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