Tag Archives: AnsaldoBreda

Exclusive: Bombardier , Hitachi lead bids for Finmeccanica’s rail units – sources

Employees and guests tour a Bombardier LRV train at manufacturing facilities in Toronto

Exclusive: Bombardier , Hitachi lead bids for Finmeccanica’s rail units – sources .Canadian plane and train maker Bombardier and Japanese industrial giant Hitachi are the two frontrunners to buy Finmeccanica’s rail subsidiaries, several sources close to the auction process said.

Italy’s Finmeccanica has been trying to sell its cash-strapped train division AnsaldoBreda together with its profitable rail signals business Ansaldo STS for three years, to help reduce net debts of 4.8 billion euros ($6.4 billion).

The sources said Bombardier Inc and Hitachi Ltd are expected to bid for the Italian group’s rail businesses ahead of an August 29 deadline. Three other groups are also expected to bid.

They are French defense electronics firm Thales, Spanish train builder Construcciones y Auxiliar de Ferrocarriles and train maker China CNR Corp Ltd, in tandem with its partner Insigma Technology Co Ltd.

Finmeccanica has struggled to sell its rail businesses together because the division that makes trains, AnsaldoBreda, has been losing money for years and has long been a drag on the Italian defense group’s results.

Finmeccanica’s listed signaling business, Ansaldo STS, is considered an attractive prospect for the bidders and has a market value of $1.45 billion.

The sources close to the auction process, who declined to be named because the talks are private, said Bombardier and Hitachi had the most overlap with train builder AnsaldoBreda.

Several sources said Bombardier Transportation was well-placed to win because it already works with AnsaldoBreda in the development, production and sale of the new Frecciarossa 1000, a train capable of transporting passengers at 360 km per hour.

Hitachi, the company behind Japan’s first “bullet” trains, said in March it was moving its global rail business to Britain as part of a push to expand within Europe and beyond.

A spokesman for Finmeccanica, which is being advised on the sale by Mediobanca and UBS, said the process remained open and offers needed to reflect the value of the assets and guarantee investment and development prospects.

Representatives of Bombardier, Hitachi and Spain’s CAF declined to comment. Spokesmen for Thales, China CNR Corporation and Insigma were not immediately available for comment.


Mauro Moretti, a veteran rail executive who took over as Finmeccanica’s chief executive in May, is under pressure to make changes at the Italian group and intends to wrap up the rail business auction in October.

State-controlled Finmeccanica aims to raise about 2 billion euros from the sales to help cut its net debt, which is rated as junk, and focus on its core aerospace and defense businesses.

The challenge for Moretti is to make AnsaldoBreda as attractive as possible so the combined sale is a success.

The sources said some of the bidders, including Bombardier and Thales, are more likely to submit provisional offers by the August 29 deadline, rather than binding bids.

The companies want more clarity on what parts of AnsaldoBreda will be included in the deal and what guarantees Finmeccanica is ready to make so the asset is more appealing.

At least two of the bidders want the Italian defense group to recapitalize AnsaldoBreda prior to any deal, two sources said, and their bids will remain conditional until Finmeccanica spells out exactly what it is prepared to do.

AnsaldoBreda, which aims to break even at an operating level in 2015, has a negative value of 150 million euros, according to one analyst estimate. It posted a loss before interest and tax of 227 million euros in 2013. Annual pre-tax losses reached a peak of more than 700 million euros in 2011.

A capital increase would help bring AnsaldoBreda’s value back to zero and beef up the balance sheet, as the division is likely to need more investment in the future, two sources said.

This would then allow the various suitors to table a competitive offer for Finmeccanica’s Ansaldo STS. The sources said the signals division would command a premium of about 25 percent over its current market value.

If Finmeccanica agrees to a capital injection then it would retain a stake in the troubled train maker and could complete an ongoing restructuring plan, the sources said.

Analysts say AnsaldoBreda is starting to see the impact of the plan designed to make the company more efficient and more selective in tenders to ensure adequate levels of profitability.

It has seen a strong rise in orders, including a subway deal in Peru. The company employs about 3,000 people, partly based in the unemployment-plagued cities of Naples and Reggio Calabria.

But a Hong Kong-based banker said there was still a pressing need for a “long-term plan” to get AnsaldoBreda back on track. He said that while a recapitalization would reduce the purchase price, it would not resolve some of the underlying issues such as the train maker’s pension liabilities.


A sale of Ansaldo would mark a revival of industry consolidation after an attempt to merge Siemens and Alstom’s train-making units failed this year.

The last major deal in the sector was Siemens’ 2.2 billion-euro acquisition of Invensys’ signaling arm, which received the green light from antitrust authorities in 2013.

In the face of fierce competition from Asian rivals, European champions see limited scope to increase their size in the global rail market without joining larger conglomerates.

China CNR, one of the bidders for Ansaldo, is the world’s largest train maker by sales ahead of China South Locomotive and Rolling Stock Corp Ltd and Bombardier Transportation.

Like Bombardier, CNR already has ties with AnsaldoBreda. The two companies signed a 10-year deal in 2012 for the provision of up to 600 of AnsaldoBreda’s Sirio low-floor trams. But CNR’s takeover ambitions could be challenged by the need for Chinese government approval, the Hong Kong-based banker said.

The sources close to the Finmeccanica sale said France’s Thales was mainly looking to buy Ansaldo STS and had little appetite to turn AnsaldoBreda around because of the limited overlap between the two companies.

Spain’s CAF, has a market capitalization of 1 billion euros and would struggle to finance a bid without teaming up with a partner, several Madrid-based bankers said.

In the first-half of the year, Finmeccanica’s rail businesses posted core earnings (EBITA) of 26 million euros, beating forecasts mainly thanks to smaller losses at AnsaldoBreda. Revenues rose 6.7 percent to 1 billion euros.

(1 US dollar = 0.7469 euro)

Employees and guests tour a Bombardier LRV train at manufacturing facilities in Toronto

New Ĺ koda tram designed for Hungary is in test operation in Pilsen


New Ĺ koda tram designed for Hungary is in test operation in Pilsen : The newest tram manufactured by Ĺ koda Transportation went out into the streets of Pilsen. It is a modern, fully low-floor tram 26T, which is designed for the transport company in Miskolc in north Hungary. It is possible to see it in the test operation from May 15th.

“Long 15 months after signing the contract our tram runs in the test operation in the streets of the city Pilsen. We were able to develop and produce a new tram that meets all the latest standards and it was in a very short time. The first two cars will be delivered according to the contractual terms to Miskolc until February 2014, the rest from a total of 31 of these trams will follow until February 2015,” says ZdenÄ›k Majer, Vice President of Sales at Ĺ koda Transportation.

The contract to supply thirtyone-low-floor trams for nearly two billion crowns was closed in the beginning of the year 2012. It also includes an option for ten years full-service for 175 million. Ĺ koda Transportation defeated in the tender other European manufacturers of trams, namely the Italian manufacturer AnsaldoBreda, the Spanish CAF, Romanian Astra Vagoane and Polish Solaris.

The tram for Miskolc is based on the best tried and tested design solutions. It is a two-way five part with three fix chassis, two outer of them are powered and middle one is standard. With a width of 2.65 meters it is the widest vehicle produced by Ĺ koda Transportation. During the construction of the vehicle by manufacturer there was an emphasis on minimizing the weight, installing the energy-efficient power generators and proven components with the aim to minimize vehicle operating costs. “The tram can hold more than 300 passengers, who can enjoy the air-conditioned vehicle and a modern information system including LCD screens. Of course there is also plenty of space for prams and handicapped passengers,” says ZdenÄ›k Majer.

In addition to the technological advantages the tram offers also an interesting modern design. “We try to accommodate to our customers. For example, the colour theme of green flowers on a white background was chosen in a poll of Miskolc people who will use the tram every day,” says ZdenÄ›k Majer. The tram 26T respects also the latest European safety directive EN 15227, which requires no threat to passengers or driver according to given collision scenarios.

Ĺ koda Transportation supplied electric equipment for the Budapest metro in Hungary since 2007, trolley buses to Debrecen, Szeged and Budapest and now starts trams to Miskolc. The total value of the closed contracts for this country makes CZK 3.5 billion. “Ĺ koda Transportation trams also run in Cagliari, Italy, in Riga, Latvia or in Wroclaw, Poland. There is the contract signed for 60 low-floor trams for the Turkish city of Konya this year. Currently we are preparing for a series of tenders for example in Germany, Italy, Turkey or Scandinavia,” says ZdenÄ›k Majer.


Source : Skoda

DANISH State Railways DSB and AnsaldoBreda agreed on IC4 train delivery


DSB purchased from Italian train company Ansaldobreda. This summer, it was calculated that the numerous delays will end up costing DSB one billion kroner more than the original price tags for the 83 train sets. The IC4s that have hit Danish tracks were forced to be pulled out of use because of braking malfunctions. Although they were able to get back on the railways, it led to DSB declaring in June that due to the delays and the unsatisfactory quality of the trains, it would refuse to pay Ansaldobreda.

After months of trying to get out of the contract, the two companies struck an agreement this week that states that all remaining train sets must be delivered by October 2013. If they are not, DSB can annul the rest of the order. The Italians still need to deliver 22 IC4 train sets and 14 IC2 train sets.

According to DSB, the Italian company has granted DSB 550 million kroner in compensation for the delays.

“The agreement clarifies a number of significant issues and uncertainties, but doesn’t change the fact that the deliver of the IC4s has been a disastrous situation for all involved parties,” DSB’s Frank Olesen said in a statement.


Source : http://cphpost.dk

IRIS certification FAQ


Which organizations support IRIS certification ?

IRIS is an initiative led by the Association of European Railway Industry (UNIFE). It is widely supported across Europe by system integrators and equipment manufacturers such as Bombardier, Siemens, Alstom and AnsaldoBreda.

What are the differences between IRIS and ISO 9001 ?

IRIS is based on the ISO 9001 structure and adds railway specific requirements to the business management system, for example in relation to project management and design.

Will this certificate replace individual evaluations ?

Yes, this certificate will replace individual evaluation by at least the four founders of this initiative (Alstom Transport, AnsaldoBreda, Siemens Transportation and Bombardier Transportation).

For what kind of companies is IRIS most relevant ?

IRIS can be applied to all direct and indirect ancillary industries (such as manufacturers of system construction parts and individual components), operators as well as manufacturers of rail-mounted vehicles.





The liberalization of European rail transport poses a particular challenge for the railway industry. With increasing competition, especially in the European Union’s goods market, railways need “ready to run” transportation systems that meet the many different requirements of individual countries as well as comply with the restrictive regulatory requirements. In parallel, railway operators expect the railway supply industry to remain competitive, and to provide proven solutions for cars, facilities and operating equipment that meet high quality standards.

What is IRIS certification?

IRIS (International Railway Industry Standard) is an initiative led by the Union of the European Railway Industries (UNIFE) and largely instigated and supported by four of the largest system manufacturers (Bombardier, Siemens, Alstom , AnsaldoBreda). IRIS is based on the internationally recognized quality standard ISO 9001, specific to the railway industry, designed for the evaluation of management systems. The underlying aim of IRIS is to improve the quality and reliability of rolling stock produced, by improving the whole supply chain.

What are the key benefits?

â–  Proof of your companys status as a quality supplier

â–  International identification and recognition in the railway industry: IRIS certified companies are included in a UNIFE database, which is used by buyers of major railway industry manufacturers.

â–  Quality improvement throughout the whole supply chain: due to standardized requirements, improved product quality and an efficient chain of procedures

â–  Decisive advantage for suppliers looking to secure or maintain contracts in the industry.

â–  Cost saving: due to uniform terms of qualification, reduced cost to obtain IRIS certification through an integrated certification to both ISO 9001 and IRIS

â–  Time saving: instead of numerous individual audits from your customers, allows one overall audit


Miami MetroRail contract approved


The Miami-Dade County Commission has approved a $313 million contract for 136 new MetroRail cars to be built by Italian manufacturer AnsaldoBreda .

AnsaldoBreda has agreed to build a local assembly plant in the Miami area. A final decision about the parts manufacturing location hasn’t been made. Either way, the plan is expected to create around 100 permanent jobs in the area, plus more temporary jobs.

The cars will feature bicycle racks, LED lighting, Wi-Fi Wireless connectivity and an integrated passenger information system.

The contract was a “design-build” agreement, which means it was based on qualifications and price, not just on bidding.

Al Dotson, attorney with Miami-based Bilzin Sumberg Baena Price & Axelrod, was AnsaldoBreda’s lead attorney on the deal. Dotson specializes in public-private partnerships.

“This has been years in the making. The new rail cars are needed,” Dotson said Thursday. “This is also one of the bigger public-private partnerships in Miami’s history.” Other examples of public-private partnerships include the Miami Port Tunnel project currently under construction.

The commission approved the contract with only one no vote from Commissioner Joe Martinez.

AnsalsoBreda is expected to deliver six rail cars per month starting the second quarter of 2015. The final six would be delivered at the end of 2017.

The term of the contract is 10 years and seven months, which includes a five-year warranty period.

MetroRail recently completed an extension to Miami International Airport. According to the commission’s agenda item, Thursday’s vote also authorizes use of charter county transportation surtax funds for rail cars.

The contract amount is based on the negotiated price of $298.88 million, plus $14.94 million for a contingency.

According to the county staff’s recommendation, the last time a contract for new rail cars was approved was in 1979, for $83.8 million.

The county will apply for federal funding after contract award.

The total project cost is $375 million, which includes $4.4 million for engineering services from Washington Infrastructure Services.

Another proposal had been received by Alstom Transportation, but was rejected by the County Attorney’s Office because the cost exceeded a cap of $2.4 million per vehicle.

The commission’s agenda item on Thursday said another offer from CAF USA was not recommended “as their offer did not provide the best value to the County.”

The county originally approved a motion to advertise for the rail car overhaul in 2004.

The county looked at the possibility of renovating existing rail cars, but in 2008, it was decided to purchase instead.

The county said initial proposals came in from Alstom at $3.48 million per vehicle; CAF’s was $2.42 million and AnsaldoBreda’s was $2.39 million.

According to the county staff recommendation, AnsaldoBreda’s plan was $4.6 million less than CAF.

AnsaldoBreda is fully owned by Finmeccanica S.p.A., Italy’s largest manufacturing investor in high technology products with approximately 73,400 employees, and is Italy’s second largest manufacturing group with approximately $21.5 billion in revenues, and orders of $61.5 billion. More than 60% of Finmeccanica’s shares are publicly traded on the Milan Stock Exchange with the remaining shares owned by the Italian Ministry of Economics and Finance.

Source : bizjournals.com


China : ANSALDOBREDA and CNR to conclude LRV contract.


On 17th Oct, 10-year agreement was signed in Beijing, between AnsaldoBreda and China Northern Rolling Stock subsidiary CNR Dalian licensing the Italian company’s Sirio low-floor LRV for production in China.

Around 200m, deal is worth to AnsaldoBreda and authorises the production of up to 600 LRVs for Chinese cities.

Source : High Beam

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