Hitachi to move rail HQ to London

Move hailed as 'vote of confidence' for UK

Japanese engineering firm Hitachi is to move its global rail headquarters from Tokyo to London.

Hitachi UK said that the decision will not entail a large move of people from Japan to the UK. The Japanese arm of the business will still be conducted from its offices in Tokyo.

Hitachi is building an £82 million factory in Newton Aycliffe, County Durham, which will assemble the UK's next generation of Intercity trains as part of a £1.2 billion Government deal. The plant will employ 750 people from 2016.

The Intercity deal is for the production of 270 carriages of Hitachi's Super Express Train, formerly known as the Intercity Express Programme (IEP) train. The hybrid / diesel electric train was designed bespoke for the UK rail network during a protracted period of development and tendering which started in 2005. The first trains are expected to enter service in 2017.

Hitachi has previously said it will look to use the Newton Aycliffe factory to make trains for export across Europe in the future.

Alistair Dormer, global chief executive of Hitachi's Rail Systems,said: "We will continue to deliver excellent service to our customer base whilst seeking new markets and opportunities for expansion. We have been supplying a wide range of international products, services and solutions, and has the capacity to meet the demands of the growing global railway market.”

The move was hailed by politicians as a "huge vote of confidence for Britain". Business Secretary Vince Cable said: "This move demonstrates a huge vote of confidence in Britain, its workers and its rail industry from one of Japan's biggest businesses.

"The Government's industrial strategy is giving companies of Hitachi's stature the confidence to invest in the UK in an expanding rail sector, creating new jobs and increasing exports."