Wednesday , August 21 2019

Siemens to resume $6.7b train deliveries to Deutsche Bahn

Bloomberg

Siemens AG will resume deliveries on a 6 billion-euro ($6.7 billion) high-speed train order from its biggest customer, Deutsche Bahn AG, ending a three-month freeze that followed the discovery of an equipment fault, according to a person familiar with the matter.
An announcement of the resumption in the handover of its flagship ICE 4 trains to the German rail operator was expected to come as soon as Wednesday, the person said, asking not to be identified as the information isn’t public. Five trains will be delivered shortly and the rest at regular intervals, the person said.
Deutsche Bahn, which depends on the trains for its passenger service, discovered a flaw in the welding of the train bodies in April and said it would stop accepting the trains from Siemens until the problem was solved. The fault was traced to supplier Bombardier Inc, which was building the wagons, a person familiar with the matter said at the time.
A spokeswoman for Siemens wasn’t immediately available for comment. A representative of Bombardier declined to comment.
Siemens Mobility, the division that includes the German industrial company’s rail equipment manufacturing operations, was carved out from Siemens last year in preparation for a merger with French rival Alstom SA.
That deal was scuttled by European Union antitrust regulators in February.
The train maker depends heavily on Deutsche Bahn for its high-speed train business.

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