Siemens Gets $1.9 Billion Order for 82 German Regional TrainsFrancois de Beaupuy
Siemens AG, Europe’s biggest engineering company, received an order worth more than 1.7 billion euros ($1.9 billion) to build 82 electric trains for Germany’s Rhine-Ruhr Metropolitan Region.
The contract, which includes maintenance services for 32 years, is the largest regional rail transport order ever won by Siemens in its domestic market, the Munich-based company said in a statement on Thursday. Siemens will build a maintenance facility in Dortmund and create 100 new jobs, it said.
“The project will secure existing high-quality jobs in North Rhine-Westphalia and create new ones,” Jochen Eickholt, CEO of the Siemens Mobility Division, said in the statement. “Our state-of-the-art train is good news for millions of commuters along the Rhine and Ruhr rivers in Germany’s most densely populated region.”
The order is a boost for Siemens as competition intensifies in the European train-making market. Hitachi Ltd. of Japan agreed to buy the rail-signal business of Italy’s Finmeccanica SpA last month to expand On the continent, while Chinese trainmakers CSR Corp. and China CNR Corp. are in the process of merging to expand globally.
Profitability at Siemens’ transport unit has fluctuated in recent years, falling to a 448 million-euro loss in 2013. That recovered to a profit in 2014, helped by the acquisition of Invensys Plc’s rail-signal operations.