Bombardier wins $296 million British trains deal

Bombardier wins $296 million British trains deal

LONDON (Reuters) - Bombardier , Britain's final remaining sight builder, has been awarded a 189-million-pound ($296 million) agreement to supply 130 carriages to UK rail user Southern.

The understanding should assistance palliate a pain caused by Britain's preference progressing this year to endowment a pivotal rail agreement to Germany's Siemens AG , heading obligatory Bombardier to cut hundreds of jobs during a plant in Derby, executive England.

Shares in Canadian-owned Bombardier rose as most as 2 percent on a generally weaker Toronto Stock Exchange on Wednesday to C$3.94, a acquire lift for a stock, that is down about 23 percent this year.

Bombardier, whose British section creates trains for use on a country's railways, will build 130 of a new Electrostar rail carriages for Southern, that runs services in south London, Surrey, Sussex and Kent, Britain's Department for Transport (DfT) pronounced on Wednesday.

"This understanding for some-more than 100 new carriages is good news for rail passengers and shining news for Bombardier and Derby," Transport Secretary Justine Greening pronounced in a statement.

"It lands Bombardier with a essential sight sequence and we demeanour brazen to Bombardier workers in Derby being among a winners of this critical deal."

The DfT is providing 80 million pounds towards a new deal, that will see new carriages enter use in Dec 2013.

"This is a poignant plan that emphasizes a opening of Bombardier's products in a UK," pronounced Paul Roberts, boss of Bombardier Transportation, Services UK.

"The new trains will be made in a UK with initial prolongation commencing in a latter half of 2012."

The DfT in Jun awarded a consortium led by Siemens a 1.4-billion-pound agreement to build and say 1,200 carriages for a Thameslink cross-London railway.

Earlier this month a cabinet of lawmakers pronounced a routine by that Britain reached that preference would be theme to an central review.

The Southern rail agreement is a third large rail sequence for Bombardier this month.

Its sight section won orders value $248 million to yield light rail vehicles and classical trams to a Frankfurt ride management progressing in December.

Last week, it announced a $648 million sequence to supply 90 new electric rail carriages to Deutsche Bahn for use also in a Frankfurt area.

(Additional stating by Nicole Mordant in Vancouver)

(Editing by Neil Maidment and Mark Potter)

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