(The Canadian Press distributed the following article on December 12.)
MONTREAL — French industrial giant Alstom has no intention of selling its rail division despite the firm’s financial difficulties, the chairman and chief executive said Friday.
Patrick Kron, on a North American tour to reassure customers and suppliers, said his company’s rail division, a competitor to Montreal-based Bombardier Inc., is performing well.
“There are different rumours spread by our competitors who in doing so recognize the quality of the opposition,” Kron told reporters. “They would like to have these assets . . . but these rumours have no foundation. We have had no discussions with anybody about a cessation of any activity in rolling stock.
“We have an excellent (competitive) position and it’s my intention to develop it.”
Kron said two out of three high speed trains in service are Alstom trains, and one in four subways in the world.
Besides rail, Alstom is active in power generation and transmission and ship building, but the French government has had to step in with a proposed $3.2 billion Cdn in direct aid to help Alstom through a difficult period during which it laid off 7,000 employees.
The subsidy is being contested by Alstom’s competitors as well as the European Commission (news – web sites).
On the other hand, Europe’s antitrust authorities are worried about Alstom’s rail and turbine assets falling into the hands of a competitor, and reducing competition, since there are few manufacturers.
Alstom Canada employs some 1,800 people, with annual sales of $500 million Cdn.
However, its moribund transport division based in Montreal recently closed after it failed to capture a life-saving contract to refurbish commuter train coaches. Bombardier won that contract with a proposal for new cars.
Alstom bought the former locomotive repair facility from Canadian National Railway in 1996. At one time the Montreal shop employed some 800 people. CN still owns the facility and land surrounding it near downtown Montreal.