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Nov 12, 2018

Bombardier, Alstom land $448M rail contract in Montreal with help from Ottawa

Bombardier

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Less than a week after Bombardier Inc. took another step away from commercial aviation, the company's rail division has scored a win – with a helping hand from the federal government.

Bombardier Transportation and Alstom announced on Monday they will supply an additional 153 Azur metro cars to Montreal's transit agency. The deal is worth $448 million, with Bombardier's share valued at $281 million, and is a follow-up to a 2010 agreement when the consortium was awarded a contract to supply 468 next-generation metro cars to the city.

Bombardier said most of the manufacturing for the 153 additional cars will take place in Quebec, with 170 employees involved in the order.

The news comes after Bombardier announced last Thursday it will be cutting 5,000 jobs, with roughly half of that headcount reduction happening in Quebec, in the plane and train maker's latest phase of ongoing restructuring.

"We are delighted by this announcement, which will maintain hundreds of jobs at our plant in La Pocatière, as well as at our North American headquarters in St. Bruno. This helps to sustain our leadership in the Québec rail ecosystem," said Benoit Brossoit, Bombardier Transportation's president for the Americas, in a release.

In a separate release, the Canadian government disclosed that it will invest $215 million to "support" the new contract.

“Modern efficient public transit infrastructure plays an important role in developing sustainable communities and supporting good, middle-class jobs,” said Infrastructure Minister François-Philippe Champagne in a release. “Our government’s historic investment in subway cars for the [Société de transport de Montréal] will improve the reliability and comfort of services for the people of Montreal."