Bombardier Transportation has announced that it has signed an agreement with Motherson Rolling Stock Systems GB, a wholly owned subsidiary of Motherson Sumi Systems, transferring Bombardier’s assets in connection with the production and installation of electrical components and systems for applications in the rail industry, comprising, among others, the manufacturing of wiring harnesses, panel and cabinet build and electromechanical assemblies in Derby.
MRSS intends to continue to operate the business with its current employees and will lease agreement that part of Bombardier’s Derby site currently occupied to do so.
The transaction is valued at approximately £10.87 million and is likely to be completed between April and June 2019.
Through its acquisition of the PKC Group in March 2017, Motherson Sumi Systems is already engaged with the manufacturing of wiring harnesses for rolling stock, mainly in Europe and North America.
PKC Group itself entered the rolling stock business by acquiring Kabel-Technik-Polska in 2015 and has since entered into a global partnership agreement with Bombardier Transportation. Now, with this agreement between MRSS and BTROS, the relationship will expand to the United Kingdom.
President of Bombardier Transportation Rolling Stock Equipment Bart Vantorre said: “This milestone is testament to the progress we continue to make on the Bombardier Transportation transformation agenda. Our long-standing relationship with Motherson and their deep expertise in electrical distribution make them the ideal partner for us as we continue to tirelessly serve our UK customers.”
Bombardier has a second BTROS business – BTROS Electronics in Sutton-in-Ashfield, near Mansfield, which designs, manufactures and supplies specialist real-time passenger information systems and customer information systems, primarily for the transportation and aerospace sectors. A Bombardier spokesman stressed that this business was NOT involved in the sale of the Derby cabling business to
Motherson Sumi Systems.