Bombardier Transportation announces proposed downsizing at its Derby facility

Bombardier Transportation today announced that it will initiate a 90 day statutory consultation process to downsize and adjust capacity at its train manufacturing facility in Derby. Employees were told today that there was not sufficient workload going forward to keep the facility operating at current levels. A total of 446 permanent jobs and 983 temporary contract staff would be affected in the proposed readjustment.

Derby is now completing orders for metro cars for London Underground’s SubSurface Lines and Victoria Line and Turbostar diesel multiple units for London Midland. All but the SubSurface Lines contract will be complete by the end of September this year.

“The culmination and successful delivery of these projects and the loss of the Thameslink contract ,which would have secured workload at this site, means that it is inevitable that we must adjust capacity in line with economic reality,” said Francis Paonessa, President of the Passengers Division for the UK.

“We regret this outcome but without new orders we cannot maintain the current level of employment and activity at Derby” Francis Paonessa added. “Over the next 90 days together with employee representatives we will work with individual employees to ensure the best possible outcome for our people,”

Bombardier acquired the Derby site from Daimler Chrysler in 2001 and over the ten year period has invested substantially in creating a state-of-the-art train manufacturing facility and centre of excellence for high technology rail engineering. The company has also successfully exported UK-built trains. Derby site currently employs 3000 and supports an estimated 12,000 employees in its supply chain.

Colin S Walton, Chairman of Bombardier Transportation in the UK, commented: “The loss of the Thameslink contract, has forced us to conduct a UK-wide review of our operations. This announcement today is part of an on-going process.”

About Bombardier Transportation in the UK

In the UK’s rail transportation industry, Bombardier is the leader in the manufacturing, refurbishment and maintenance of rolling stock and is the only remaining train builder in the country. Bombardier Transportation employs approximately 6,000 people at production facilities in Derby and Plymouth and 15 maintenance, refurbishment and overhaul centres across the UK. Bombardier currently maintains approximately 5200 vehicles in Great Britain.

About Bombardier Transportation

Bombardier Transportation, a global leader in rail technology, offers the broadest portfolio in the rail industry and delivers innovative products and services that set new standards in sustainable mobility. BOMBARDIER ECO4 technologies – built on the four cornerstones of energy, efficiency, economy and ecology – conserve energy, protect the environment and help to improve total train performance. Bombardier Transportation is headquartered in Berlin, Germany and has a presence in over 60 countries. It has an installed base of over 100,000 vehicles worldwide.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from commercial aircraft and business jets to rail transportation equipment, systems and services, Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the fiscal year ended January 31, 2011, were $17.7 billion, and its shares are traded on the Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow Jones Sustainability World and North America indexes. News and information are available at www.bombardier.com or follow us on Twitter @Bombardier.