Thursday, February 2, 2023
Home EU French Alstom hesitates about EU plan to close German train factory

French Alstom hesitates about EU plan to close German train factory

The French train factory Alstom has not yet met all the conditions of the European Commission more than seven months after the completion of its takeover of the Canadian train manufacturer Bombardier. For example, Alstom had to (partly) divest its workshop in Berlin, but that has not yet happened despite the deadline on July 31.

Alstom has been negotiating this with the Czech Skoda Transportation for months, but that is becoming increasingly difficult. Alstom director Henri Poupart-Lafarge said at the shareholders' meeting last month that such processes are "long and complicated", but gave no further details.

It is suspected that Alstom is still using the opening of the Henningsdorf branch as a 'bait' to win a large German order. Last month, the director called for 'new investments in this location. He also hinted that much will depend on the tender for new rolling stock for the Berlin S-Bahn, according to Der Tagesspiegel.

A French consortium of Alstom and Transdev is engaged in a battle with Deutsche Bahn, which is working with Siemens and Stadler for the order for new equipment for the S-Bahn above-ground express tram in the German capital. The German government would like to keep the employment of that billion-dollar order in its own country. In order to accommodate this, Alstom apparently wants to keep Hennigsdorf open.

Siemens and Alstom have been negotiating intensively for several years about a possible merger of their German and French train industries. Those discussions eventually faltered over concerns of the EU competition authorities about the emergence of oversized market-dominant concerns. Alstom then opted to take over the Canadian train builder.

In the meantime, more and more voices are being raised in Europe to allow large mergers, even if they become too big competitors for smaller industry peers. There is an increasing demand for a European industrial policy. The EU must ensure that their industries and economies are not dominated by superpowers such as the US and China.

According to unconfirmed reports, Alstom offered to EU Commissioner Vestager to close the Alstom production center in Reichshoffen, France, in exchange for closing that German facility. A spokesman for the European Commission declined to comment on the 'final hurdles' in the Alstom-Bombardier file.

Popular

Boris Johnson is going to ask EU for another Brexit delay

British Prime Minister Boris Johnson is preparing to request the EU postponement for the Brexit, now that the ...

Brexit delay: three days, weeks or months? Or longer and also a referendum?

The European Union is ready to postpone Britain for another three months if British Prime Minister Boris Johnson ...

Denmark agrees to construct Russian gas pipeline Nord Stream 2

Denmark is the last European country to agree to the route for the construction of the Nord Stream 2 gas pipeline.

Ukrainian export of chicken breast + bone from now on legally to EU market

The almost unlimited import of Ukrainian poultry meat comes to an end. The Association Agreement with the Eastern European country is thus amended ...

Croatia also wants the euro and visa-free Schengen zone as soon as possible

The Croatian Prime Minister Andrej Plenković made it clear that Croatia, the newest EU newcomer, is joining the inner circles of ...

Just in

EU crisis fund open to duped farmers in countries neighboring Ukraine

Six Eastern European EU countries have again asked the European Commission for support against the market distortions caused by Ukrainian agricultural exports. It expires...

The Netherlands does not yet support EU law against air pollution from livestock farming

In principle, the Netherlands takes a positive view of the European proposal to limit environmental pollution from livestock farming. The Netherlands also believes that the emissions...

Residues of glyphosate have not only been discovered in rural areas

Medical research in Irish families has shown that one in four people had residue of the herbicide glyphosate in their bodies. The...

Brussels threatens EU countries with fines for lax approach to environmental pollution

The European Commission is threatening to take six EU countries to the highest EU court because they do not do enough about soil and air pollution.

The Netherlands also limits technology sales to Chinese industry

The Netherlands and Japan, together with the United States, will limit the sale of semiconductor machines to China. As a result, the Chinese cannot ...