Tyne and Wear Metro: Swiss firm Stadler to build new fleet
Swiss firm Stadler has won a £362m contract to build a new fleet of trains for the Tyne and Wear Metro.
It had been up against Spanish firm CAF and Japanese company Hitachi, which was ruled out last year despite having a manufacturing plant in County Durham.
Stadler will be responsible for the maintenance of the 42-train fleet for up to 35 years, and will construct a new maintenance depot.
Metro operator Nexus said new trains would be running by 2024 at the latest.
The value of the contract is expected to rise to about £700m when the costs of decommissioning Metro's existing fleet from the 1980s is taken into account.
The decision to rule out Hitachi was described as "madness" at the time by Tees Valley mayor Ben Houchen, who said it would put up to 250 jobs at risk.
Hitachi's plant in Newton Aycliffe, which employs 700 people, built the East Coast Mainline's new Azuma trains.
In January Hitachi confirmed up to 250 redundancies, but said it could rehire staff if demand for its trains increased.
Responding to the news that Stadler had won the contract, Mr Houchen said: "This is an absolutely disgraceful decision from Nexus."
Martin Gannon, leader of Gateshead Council and chair of the North East Joint Transport Committee, said: "We have worked within the legal constraints.
"We have to ensure openness and transparency and fairness. We advertised to the world and asked people to bid.
"We have to be fair to everyone, Hitachi included."
Stadler's director of sales, Ansgar Brockmeyer, said: "The contract with Nexus represents an important milestone for Stadler in Great Britain.
"After Glasgow and Liverpool, this is the third metro operator to opt for a Stadler vehicle."
The Swiss company has a factory in Liverpool and is building a new Merseyrail fleet.
However, trains for the Tyne and Wear Metro will be being built in St Margrethen in north east Switzerland.
Nexus said more than 30 UK firms would supply parts for the new trains - half of them in the North East.
Managing director Tobyn Hughes said: "Stadler will put in place new supply chains here in North East England and the UK securing local jobs.
"We asked for the best trains for the best price. Stadler has delivered on all fronts."
The new trains will have air conditioning, Tube-style linear seating to increase capacity, wider doors and aisles, wifi connectivity and charging points.