Bullet train maker Hitachi moves rail business from Japan to UK

The Japanese electronics firm hopes that the move will help expand the rail business from 2,500 workers to 4,000.

17:14 20 March 2014

In what has been viewed as a huge vote of confidence towards Britain, electronics giant and bullet train maker Hitachi has confirmed that it will be moving its rail business from Japan to the UK.

With this move, it is the firm’s goal to expand its rail business and increase manpower from 2,500 workers to 4,000. It also hopes to increase revenue from 2bn to 3bn euros.

Currently, the giant firm is building a factory at Newton Aycliffe – the same town that the company will build city trains from after it won a £1.2bn deal last July.  The firm is expecting to hire 750 workers when it opens next year.

The BBC's industry correspondent, John Moylan, also says that the move to UK soil will boost Hitachi's British credentials in the wake of rows over rail contracts being awarded to foreign firms.

Alistair Dormer, chief executive of the global rail systems business, reacted to the news saying: "Today's announcement is a significant sign of intent by Hitachi to grow its business in the rail market.”

"Both the UK and Japan remain important as markets for Hitachi Rail, and with our train factory in the north-east of England now under construction, we will work to realise our export potential from the UK, expanding into Europe and emergent markets."