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2012-07-25 HIT-001
Hitachi Ltd

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Intercity Express Programme financial close paves way for Hitachi investment in rail manufacturing and assembly plant


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IEP
Intercity Express Programme
rolling stock procurement



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Hitachi Ltd

Intercity Express Programme financial close paves way for Hitachi investment in rail manufacturing and assembly plant
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2012-07-25 £4.5 billion investment in new trains creates new jobs (DfT Department for Transport)

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date
25 July 2012
source Hitachi Ltd
type Press release



London, July 25, 2012 – Hitachi, Ltd. (TSE: 6501, “Hitachi”) today announced that
the Department for Transport and Agility Trains (the bidding consortium Hitachi
formed with its partner John Laing) have reached financial close for the Intercity
Express Programme (IEP).

As part of the IEP, Agility Trains’ main supplier Hitachi will provide, service and
maintain a total of 596 rail carriages destined to run on the East Coast Main Line and
the Great Western Main Line to replace the ageing fleet of Intercity trains. The new
rolling stock will include electric and bi-mode trains with increased capacity compared
to the current fleet, providing more comfortable, highly reliable trains for UK
passengers. In order to fulfill the demanding requirements for dependability and
availability of the trains, Hitachi will construct a number of new, state-of-the-art
maintenance depots in Bristol, Swansea, west London and Doncaster, and upgrade a
number of depots throughout the UK.

The contract announcement paves the way for the investment by Hitachi to build a
rolling stock manufacturing and assembly plant in the UK. Hitachi’s preferred site for
the plant is in Newton Aycliffe, County Durham, and negotiations with the developer
are in the final stages. The factory is set to create 200 jobs in the construction phase
and will be built over the course of two years, to be fully operational in 2015. The
facility is planned to be capable of producing up to 35 vehicles per month and
employing up to 730 people, including a UK Research and Development facility.
Hiroaki Nakanishi, Representative Executive Officer and President of Hitachi, Ltd.
said: “I am extremely pleased that after a long period of negotiations, we have been
able to complete the formal contract for this project. This represents an extremely

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important step on Hitachi's path toward global growth through Social Innovation
Business. I would like to express my deep respect for the efforts of those
representatives of the British government who invested so much energy into
negotiations over a long period of time to ensure that this project could be realised,
and at the same time, I would like to convey my most sincere thanks to members of
the Japanese government and all those involved who offered invaluable support as
well. Hitachi will do its utmost to provide highly reliable, comfortable, and
environmentally friendly services to passengers, and to contribute to employment and
the growth and development of British society by establishing a new manufacturing
base equipped with the world's most advanced production facilities.”

Keith Jordan, Managing Director of Hitachi Rail Europe said: “Having reached
financial close on the Intercity Express Programme is a major milestone for Hitachi
and enables us to go ahead with our strategic investment in a state-of-the-art rolling
stock factory in the UK. Over the last months, we have worked closely with the
developer for our preferred site in Newton Aycliffe, and our plans are very mature.

“Earlier this year, we appointed a plant manager to oversee the construction of our
plant and to eventually run the factory once it is operational. He is engaging with the
local supply chain as well as local universities and training providers to ensure that
local people will have the best opportunities when we start recruiting staff and
selecting our suppliers.”

The state-of-the-art Hitachi Super Express Trains will provide a significant increase in
capacity on both routes to adapt to growth in passenger numbers. With a considerable
reduction in weight per seat when compared to the trains currently running on the line,
the fleet of trains will use less energy to deliver improved journey times.

- End -

Notes to editors:
- Short computer generated films (low-res and high-res), as well as computer generated
images of the trains and the manufacturing plant are available upon request, or can be
found on Youtube:
Hitachi Intercity Express Train CGI film
http://www.youtube.com/watch?v=DeddoFChmm8&feature=context-cha
http://youtu.be/c0P5CmBNWLc

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Animation of planned Hitachi Rail Europe manufacturing plant in Newton Aycliffe
http://www.youtube.com/watch?v=uZ0B2Mv_CiE

- Bi-mode trains are fundamentally electric trains, which are equipped with additional
under-floor diesel generators to provide propulsion where lines are not electrified.
Diesel generators can be removed in case decisions for further electrification are
made, therefore enabling a smooth transition to an increasingly electrified network.

- The contract includes the provision into daily service of the following cleaned, serviced
and maintained trains:

? Provision of 21x 9-car electric trains and 36x 5-car bi-mode trains for Great
Western Main Line into passenger service each weekday (369 vehicles)
? Provision of 12 x 5-car electric trains, 10 x 5-car bi-mode trains and 13 x
9-car bi-mode trains into passenger service each weekday for East Coast
Main Line with an option for a further 30 x 9-car electric trains. (227 vehicles
with options for a further 270 vehicles)

About Hitachi Rail Europe Ltd.
Hitachi Rail Europe Ltd. is a wholly owned subsidiary of Hitachi Europe, Ltd. and is
headquartered in London, UK.

Hitachi Rail Europe is a total railway system supplier offering rolling stock, traction equipment,
signalling, traffic management systems, and maintenance depots.
Hitachi draws on many years of experience as a leading supplier of high-speed trains such as
the Shinkansen (bullet train) for the Japanese and international markets. In Europe, Hitachi
Rail Europe’s first rolling stock contract was to deliver a fleet of 29 Class 395 trains, the first
domestic high-speed train in the UK. The trains are maintained at Hitachi’s state of the art
depot in Ashford, Kent.

For more information about the company, please visit: www.Hitachirail-eu.com .

About Hitachi, Ltd.
Hitachi, Ltd., (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics
company with approximately 320,000 employees worldwide. Fiscal 2011 (ended March 31,
2012) consolidated revenues totaled 9,665 billion yen ($117.8 billion). Hitachi is focusing more
than ever on the Social Innovation Business, which includes information and

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telecommunication systems, power systems, environmental, industrial and transportation
systems, and social and urban systems, as well as the sophisticated materials and key
devices that support them. For more information on Hitachi, please visit the company's
website at http://www.hitachi.com.


Railhub Archive ::: 2012-07-25 HIT-001





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