Hitachi ready to sign U.K. train contract

Hitachi Ltd., the preferred bidder for an order to replace U.K. trains, said it’s prepared to sign a contract to provide the vehicles soon.

“We’re ready to sign a contract to replace existing trains in the U.K. very soon,” President Hiroaki Nakanishi said at a Hitachi Innovation conference in Tokyo today.

Hitachi, which provided the U.K. with high-speed trains for the British-side of the Channel Tunnel, is bidding to supply 600 trains as part of the Agility Trains group, which includes Henderson Group Plc’s John Laing infrastructure unit, for an Intercity Express Program to succeed aging cars. Hitachi restarted talks with the U.K. last year after the country froze discussions the previous year amid a change in government.

The 7 billion-pound ($11 billion) Intercity Express Program was approved by the U.K.’s previous Labour government before being put on hold amid cost concerns. The plan includes electrification of the Great Western line from London Paddington station to the city of Bristol, allowing replacement of 30-year- old InterCity 125 diesel expresses.

Hitachi shares rose 2.4 percent to 465 yen at close of trading in Tokyo today. The stock has gained 15 percent this year, compared with a 4 percent increase in the Nikkei 225 Stock Average.

The maker of nuclear reactors and air-conditioners has said that it aims to build a factory to make trains in Newton Aycliffe in County Durham, U.K.