The proposed £77m investment by Hitachi Rail Europe in a new train assembly plant will revitalise Newton Aycliffe writes a special correspondent.
The long-awaited completion of the agreement between the Department for Transport and Agility Trains, the consortium consisting of Hitachi and John Laing, to deliver the Intercity Express Programme (IEP) is so close that after over two years of delay it could now be just a matter of weeks away from an announcement by the DfT.
The significance for Newton Aycliffe is not to be understated. As a manufacturing base, this former new town has seen its industrial fortunes fluctuate. The arrival of Hitachi will bring with it a 450,000 sq ft plant, 500 direct jobs and direct rail access to the site. To say its ‘good news’ for the town is a significant understatement.
The selection of Newton Aycliffe against 40 other UK locations underlines the town’s connectivity by road and rail, important for Hitachi as the company has horizons beyond the UK and contracts such as the IEP and is openly negotiating for contracts in Europe. This has potential for Teesport.
“This part of Co Durham is an established manufacturing area dating back to its new town days, however more recently it has attracted distribution/logistics operations given the excellent A1M connectivity,” says Simon Haggie, industrial partner at Knight Frank. “Faverdale, Darlington, is home to large Argos and Aldi warehouses and more recently Lidl has developed a regional distribution warehouse at Newton Aycliffe.
“Wynyard is increasingly seen as a distribution location because of its location on the A19 and proximity to Teesport, but it was Merchant Place Developments’ site at Amazon Park which offered the scale and rail access to attract Hitachi and it is hoped that other larger occupiers that may come through in due course as part of the supply chain.”
The arrival of Hitachi is long-overdue. In 2009, the Agility Trains consortium was announced preferred bidder for the Intercity Express Programme. One year later, the then Secretary of State, Lord Andrew Adonis, ordered a review of the Intercity Express Programme, to ensure that it was value for money for the taxpayer.
Then there was the General Election in the same year which suspended progress on the contract which also led to the new coalition government conducting a spending review. So there have been several impediments to the project though all the while there has been continuing dialogue between the DfT and Agility Trains with close of contract anticipated shortly.
This will be a significant inward investment for the North East. Though not comparable to the scale of Nissan, the Hitachi development will nevertheless underline the fact that the region is an excellent location for Japanese companies. Newton Aycliffe in particular will become an important focal point for a new industry.
