Japan linked to £7.5bn trains deal

Last Updated: Thursday, 12 February 2009, 15:34 GMT

An artist's impression of a train which will be built under a new £7.5 billion contract

The Government is facing growing controversy after awarding a £7.5 billion contract to build new trains to a consortium including a Japanese company which will carry out some of the work in its own country.

Unions and Labour MPs questioned the announcement that 12,500 jobs will be created or safeguarded through the deal to build and maintain a fleet of new "super express" trains for the Great Western and East Coast main lines, replacing existing 20 to 30-year-old high speed trains.

Agility Trains - made up of Hitachi, John Laing and Barclays - said it had drawn up a shortlist of three sites in Sheffield, Ashby de la Zouch in Leicestershire and Gateshead for a new factory, which will eventually employ up to 500 workers.

The announcement was a blow to a rival consortium bidding for the contract, which included Bombardier, the only company making trains in the UK, with a factory in Derby, employing more than 2,000 workers.

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