Alstom in Talks for $7 Billion Buyout of Bombardier train division, per report

Business

(WETM) – Train manufacturer Alstom SA, who operates a manufacturing and engineering facility in Hornell, confirmed with Bloomberg that they’re working to acquire the rail business of Bombardier Inc.

Bloomberg says both companies reported that “discussions are ongoing and no final decision has been made,” and that a person familiar with the deal says it could be worth $7 billion.

Alstom operates out of 11 locations, and its Hornell location is its only manufacturing facility in the northeast. They also run a Projects and Engineering Facility in West Henrietta and are headquartered in New York City.

Trains being manufactured in Hornell will soon replace the Amtrack Acela trains that have served the northeast corridor for decades.

Earlier this year U.S. Senator Charles E. Schumer announced that the Federal Railroad Administration (FRA) signed off on Amtrak’s permit application for a one-time movement of its just-constructed Next-Generation High-Speed train to its test track in Colorado.

“The FRA approving Amtrak’s request to move its Next Generation High-Speed Train to its Colorado test track is a critical step in getting these state-of-the-art trains on the tracks and in improving reliability, service, safety and capacity for all those who travel the critical Northeast Corridor,” said Senator Schumer.“I appreciate the FRA quickly heeding my request and fast-tracking this crucial permit to get the Next Generation High-Speed train inspected and have its safety ensured. These new trains, once fully-produced, will be a true win-win that will improve rail service and further establish Alstom as a premier transit.”

U.S. Senator Charles E. Schumer

The news also comes after the City of Hornell received the $10 million Downtown Revitalization Grant in October. Hornell joined the city of Elmira and the villages of Penn Yan and Watkins Glen as Downtown Revitalization Initiative recipients within the Southern Tier.

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