Bombardier Secures $2.1 Billion Deal To Make Coaches For German Railway

January 5, 2009 2:07 p.m. EST

Montreal, Quebec (AHN) - Bombardier Transportation signed a framework agreement with Deutsche Bahn worth $2.1 billion on Monday for the Canadian firm to manufacture 800 double-deck coaches for the Germany railway company.

Bombardier president Andre Navarri said it was the largest deal for vehicles Deutsche Bahn made with one supplier. Deutche Bahn chief executive officer Hartmut Mehdorn said the railway firm is pushing through with the order despite the global economic crisis which causes many firms to be cautious over capital expenses.

"Precisely because worldwide economic growth is being assessed so skeptically, we must have the courage to invest in the future," Medhorn said. "Efficient, high-capacity transportation systems require a state-of-the-art vehicle fleet with energy-savings trains that can be flexibly combined and driven."

Following the announcement of the deal, shares of Bombardier rose two cents to $4.74 at the morning trading of the Toronto Stock Exchange.