- First export of UK-built trains for over 12 years allows
Bombardier to expand manufacturing capacity in Derby
- UK Export Finance provides £1.7bn backing for deal with Egypt
- Government-backing part of commitment to help exporters
across the UK build back better and take advantage of new trade
deals
A consortium led by Bombardier Transportation has confirmed a
deal with the Egyptian Government to build two new monorails
thanks to £1.7 billion backing from UK Export Finance
(UKEF), the largest amount
of financing it has ever provided for an overseas infrastructure
project.
International Trade Secretary today
announced the government guarantee, which will support highly
skilled jobs in Derbyshire as the UK builds back better in the
aftermath of coronavirus.
Bombardier’s consortium was named preferred bidder for the
project at the 2020 UK-Africa Investment Summit and, with
UKEF’s guarantee, has
secured the financing needed to fulfil the contract and start
production. Bombardier can now invest in its manufacturing centre
in Derby where the trains for the Egyptian monorails will be
designed and built.
This will be the UK’s only monorail car production line and will
directly support 100 UK jobs at the company and many more in its
UK supply chain.
This news comes as the UK hosts the Africa Investment
Conference today (January 20 2021), its first major
international investment conference as an independent trading
nation. The UK-Africa trade relationship was valued at £35
billion in 2019, with around £54 billion of bilateral investment
stock on top of that. The UK is by far the biggest foreign direct
investor in Egypt and continues to aspire to be its trade and
investment partner of choice, and UKEF will play a key role in this
shared vision for growth.
International Trade Secretary said:
Trade is an incredibly powerful way to propel growth and create
jobs as we recover from the pandemic. This deal shows why we
are so determined to get businesses to grasp these
opportunities and take advantage of the support available from
Government.
One third of our economy is exports. That’s why support from
our export credit agency is vital. It can help the UK get a
bigger slice of the global economic pie, secure jobs across the
country and make the most of our newfound independence as a
trading nation.
Matt Byrne, president of Bombardier Transportation (UK and
Ireland), said:
The Cairo Monorail export win, against international
competition, shows that that the UK rail sector can fight and
win in key growth markets such as sustainable transport.
This is the first UK export since our Derby-built trains were
exported to South Africa for the Gautrain project in 2008.
Thanks to UKEF’s support
and those working in Embassies across North Africa, this new
deal will bring sustainable benefits to Egypt and create job
opportunities in the UK.
Background
Bombardier employs 4,000 people in the UK, with around 2,000 in
Derby including over 400 specialised engineers, who develop and
build trains for rail franchises across Britain. This expertise
will be used to build and maintain two electrified monorails that
together will transport millions of people every year in the
Cairo metropolitan area. The new lines will connect the New
Administrative City with East Cairo and 6th October City with
Giza.
The monorails are a part of Egypt’s plans to build a sustainable
transportation infrastructure that can cope with its growing
population while reducing climate change impacts.
Bombardier also sees additional opportunities to increase its
exports of UK built trains using its new production line as
global demand for fast, sustainable public transportation
solutions increases.
The UKEF supported Buyer
Credit facility will be administered by JP Morgan acting as the
Initial Mandated Lead Arranger and the Facility Agent.
Reinsurance support has also been secured with the help of
Italian ECA SACE and
Spanish ECA CESCE.
About UK Export Finance
UK Export Finance is
the UK’s export credit agency. It exists to ensure that no viable
UK export lacks for finance or insurance from the private market,
providing finance and insurance to help exporters win, fulfil and
get paid for export contracts.
About Bombardier Transportation
Bombardier Transportation is a global mobility solution provider
leading the way with the rail industry’s broadest portfolio. It
covers the full spectrum of solutions, ranging from trains to
sub-systems and signalling to complete turnkey transport systems,
e-mobility technology and data-driven maintenance services.
Combining technology and performance with empathy, Bombardier
Transportation continuously breaks new ground in sustainable
mobility by providing integrated solutions that create
substantial benefits for operators, passengers and the
environment. Headquartered in Berlin, Germany, Bombardier
Transportation employs around 36,000 people and its products and
services operate in over 60 countries.
