Railway: Spanish CAF takes Alstom factory in Reichshoffen

The transfer of the Alsatian factory, industrial tool making more than 300 million euros of turnover and employing 740 employees, will be effective from the second half of 2022.

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The event constitutes an authentic change in the French railway landscape. The Spanish CAF group will become an important player in the train industry in France, taking up the Reichshoffen plant (Bas-Rhin) at its current Owner Alstom-Bombardier, jointly announced the two companies, Wednesday, November 24.
This assignment, which represents the consideration for acceptance by the European Commission of the merger of Alstom with the Canadian Bombardier, effective since early 2021, also includes its platforms of Regional Coradia versatile trains, products to Reichshoffen, and Talent 3, the latter being currently developed in Hennigsdorf (Germany). The total amount of the transaction has not been specified.

The transfer of the Alsatian factory, an industrial tool carrying out more than 300 million euros of turnover and employing 740 employees, will be effective from the second half of 2022. It will be without retrieves of positions, CAF ensuring the production of the contracts already underway on the site, in particular the hydrogen trains acquired by four French regions (Alstom-Bombardier will retain the control of the traction system in Tarbes), as well as the materials intended for Charles-de-Gaulle Express. Only a small train of trains for Algeria will remain in the giron of Alstom. As for the resumption of the Talent 3 platform, it will concern the transfer of intellectual property and 25 engineers out of 100.

The final designation of Caf was not won in advance, the Spaniard having, at first, been retoted because its initial offer did not include talent 3. Only one candidate, Skoda Transportation (no link with The Skoda Automobile, a subsidiary of Volkswagen), seemed favorite, but the exclusive negotiations did not succeed at the deadline of July 31, 2021, and an additional period was granted to Alstom by the Commission to find a buyer.

“The best option for employees and customers”

CAF eventually imposed after the withdrawal of Skoda, thanks to a stronger social and industrial file, revealed the echos, Tuesday, November 23. “It was the best option for employees and customers”, admit on the Alstom-Bombardier side. The spokesman of the Intersyndical CGT / FO / CFE-CGC of Reichshoffen, Daniel Dreger, greeted “a news that reassures employees”, CAF being “gaining a lot of contracts and nibbled market share ( …) “. “They have a consequent workload in relation to what Skoda could bring us. Moreover, we must know that Alstom does not let us down and brings us a workload until mid-2026, with regard to studies and industrial production, “he added.

In a way, with this case, Alstom-Bombardier adoube Caf as his main rival on the French market. This one, headquartered in the Spanish Basque Country, recently won some French Giant’s Nose and Beard (RER and Trains Intercited for SNCF) and invested 25 million euros on its historic site. Bagnère-de-Bigorre (Hautes-Pyrenees) to be able to answer it industrially.

In this context, the reichshoffen gain is undoubtedly a nice trophy for the Iberian group and the President of CAF France, Alain Picard. With its 3 billion sales and its 10 billion contracts, Spanish remains a modest group compared to Alstom-Bombardier (15 billion turnover, 76 billion contracts), number two worldwide of the train and always hegemonic in France.

However, the acquisition allows it a significant increase of 10% of its turnover. It also provides an industrial tool and a geographical position allowing it to feed higher ambitions in the hex, and a base to attack the German market.

/Media reports.