CAF Group declines due to inflation and British cuts in the AVE project

Inflation and component shortages hit accounts CAF Group, whose profits fell by 38 percent in 2022. The Basque multinational wanted to recover from this blow, but has now received another blow from the United Kingdom, due to cuts, and the Israeli-Palestinian conflict, since the ship was scheduled to be built. Jerusalem light metro.

UK Prime Minister Rishi Sunak announced the cancellation of the high-speed rail line that had been accumulating cost overruns, HS2. This was the second high-speed line in the country after the one crossing the English Channel.

“Instead, we will reinvest every penny into hundreds of new transport projects,” Sunak said. Dragados (ACS), Ferrovial, Ineco, Typsa and Sener were also in the business.

At least CAF is bailing out other UK companies, because in June it concluded an agreement to expand a contract awarded in June 2019 covering the supply of trains to DLR, which is run by Transport for London (TfL). The expansion agreement includes the supply of 11 additional units, which will be added to the initial 43 units stipulated in the contract. The volume of this expansion amounts to more than 90 million euros.

All these contracts encouraged unions to raise their demands in confrontation In accordance with the new CAF agreement, strikes also called by Navarrese’s subsidiary Trenasa began on Thursday.

Solaris CAF key

Things are looking up for CAF affiliate Solaris, resulting in the company being relocated to Poland by the Basque outfit. It is worth noting that CAF started this work at its Navarrese subsidiary in Castejon, Trenasa.

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In September, Solaris won important contracts to supply hydrogen buses to the Italian cities of Bologna and Venice, in addition to Cologne, Germany. The total size of these projects is approximately 150 million euros, an amount that can be increased if the planned expansions are implemented.

As well as the German city of Duisburg, and Aarhus, Denmark In the coming months, they will receive a total of 81 zero-emission buses under separate closed-door contracts with Solaris, with a total volume of around 50 million euros.

CAF Group will also supply electric buses to Cagliari in Sardinia, metro units to Naples and trams to Palermo, the capital of Sicily. The value of the three aforementioned contracts exceeds 150 million euros.

Swedish public transport company Nobina Stockholm has also concluded a contract with Solaris for the supply of up to 55 Urbino 15 LE electric buses. These are second-class, i.e. intercity, vehicles, so they will be able to operate on various suburban roads in the Stockholm area. The buses are scheduled to be delivered during 2024.

Solaris is a leading supplier of sustainable buses for public transport in Europe. “The proof of this is that at the end of this year it is estimated that there will be around 3,000 vehicles,” says the multinational company based in Piacin (Gipuzkoa).

Rain contracts trains to Kef from Europe

CAF explained in last year’s accounts that the Basque group’s high available order book “continues to support near double-digit year-on-year growth, despite the impact of supply chain problems at Solaris” (a bus subsidiary relocated to Poland).

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This growth can be maintained as they have just secured a prize worth over €600 million in the Netherlands. Dutch operator NS (Nederlandse Spoorwegen), The company, which operates passenger and intercity services for the Dutch railway network, has contracted to supply its new fleet of double-decker trains for intercity services.

The company explained that this contract “covers the supply of 30 units of 4 cars and 30 units of 6 cars, as well as technical support for their maintenance, an activity that will be carried out by NS itself.” The signed contract exceeds 600 million euros, an agreement that includes additional options to contract more units that would increase the aforementioned amount.

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