Jump to content

Alstom

From Alfawiki
Alstom SA
Company typePublic
IndustryRail transport systems manufacturing
PredecessorSociété Alsacienne de Constructions Mécaniques, Compagnie Française Thomson-Houston
Founded1928; 98 years ago (1928)
FateDivested power and grid sectors to General Electric in 2015; focused on rail transportation
Headquarters
France
Area served
Worldwide
ProductsHigh-speed trains, suburban and regional trains, urban transit vehicles, trams, rail services, signaling technology, locomotives
Websitewww.alstom.com

Alstom SA () is a global French corporation specializing in manufacturing rail transport systems, with expertise in passenger transit, rail services, signaling technology, and locomotive production. Its portfolio includes high-speed trains, suburban and regional trains, urban transit vehicles, and trams.

The company traces its roots back to 1928 when the electric engineering branch of Société Alsacienne de Constructions Mécaniques (Als) merged with Compagnie Française Thomson-Houston (thom). Over the years, Alstom expanded through significant acquisitions such as Constructions Électriques de France in 1932, the shipbuilding firm Chantiers de l'Atlantique in 1976, and portions of ACEC during the late 1980s.

In 1989, Alstom combined forces with segments of the British General Electric Company, resulting in the formation of GEC Alsthom. The company further grew in the 1990s by acquiring German rolling stock manufacturer Linke-Hofmann-Busch and Italian rail signaling expert Sasib Railways. In 1998, GEC Alsthom was publicly listed on the Paris Stock Exchange and rebranded as Alstom, producing railway rolling stock alongside power generation equipment and ships.

Confronted with financial strain in 2003, Alstom secured a €3.2 billion rescue package from the French government and divested several units—including its shipbuilding and electrical transmission businesses to Areva—to align with EU regulations on state aid. The following year, it faced an unexpected €4 billion expense related to turbine design flaws inherited from ABB’s turbine operations acquisition.

In 2014, General Electric agreed to purchase Alstom’s power and grid sectors for US$17 billion (€12.4 billion). The transaction was subject to regulatory conditions imposed by French authorities, which included forming joint ventures with domestic companies in power generation and transmission, divesting the heavy gas turbine business to Ansaldo Energia, and selling off its rail signaling division. This deal was finalized in November 2015, after which Alstom concentrated exclusively on rail transportation.

Pursuing expansion opportunities, Alstom proposed a merger with Siemens Mobility towards the end of 2017; however, this plan was blocked by the European Commission in February 2019. Later, in February 2020, Alstom reached an agreement to acquire the transportation segment of financially struggling Bombardier Inc., completing this acquisition in January 2021.

Alsthom (1928–1989)

Alsthom was established in 1928 through the consolidation of Compagnie française Thomson Houston (CFTH), the French heavy engineering subsidiary of the Thomson-Houston Electric Company, and the Société Alsacienne de Constructions Mécaniques. In 1932, it broadened its involvement in transportation by acquiring Constructions électriques de France, based in Tarbes—a manufacturer specializing in electric locomotives as well as electrical and hydraulic equipment.

In 1969, majority ownership of Alsthom was assumed by Compagnie Générale d'Électricité (CGE). The 1976 merger with Chantiers de l'Atlantique led to the creation of Alsthom Atlantique, marking an expansion into marine engineering. A milestone was achieved in 1977 when it constructed the first 1300 MW generator set for the Paluel Nuclear Power Plant, setting a new world record by reaching a 1500 MW output.

Alsthom delivered its inaugural TGV train to SNCF in 1978. The TGV subsequently set multiple rail speed records: reaching 380 km/h in 1981 and then surpassing that with 515.3 km/h in 1990. It also established a high-speed endurance record in 2001 by covering a distance of 1067.2 km from Calais to Marseille within three hours and twenty-nine minutes. In 1986, Alsthom Belfort secured an order from EDF for what was then the world’s largest gas turbine rated at 212 MW.

During 1988–89, CGEE Alsthom acquired ACEC Énergie—which specialized in hydroturbines and nuclear electrical equipment—and ACEC Automatisme (automation) from the defunct Belgian company Ateliers de Constructions Electriques de Charleroi. Full control over ACEC's transport division was obtained by Alsthom, which subsequently renamed it ACEC Transport.[1]

GEC Alsthom (1989–1998)

At the beginning of 1989, GEC Alsthom was established through an equal partnership merger between Alsthom and the Power Systems Division of the British General Electric Company, with the objective of broadening Alsthom's global market presence. In May of that year, GEC Alsthom expanded by acquiring the UK-based rail vehicle manufacturer Metro-Cammell.

Throughout the early 1990s, GEC Alsthom served as the main producer of the British Rail Class 373, a TGV variant specifically engineered for operation through the Channel Tunnel. This fleet was commissioned by SNCF, NMBS/SNCB, and British Rail, with manufacturing commencing at the Belfort plant in 1992.

In 1994, GEC Alsthom acquired a majority 51% share in Linke-Hofmann-Busch from Salzgitter AG. The subsequent year saw the company secure full ownership of MAN Energie, a steam turbine producer. Early in 1998, GEC Alsthom diversified into electrical contracting by purchasing Cegelec and rebranding it as Alstom Power Conversion.

Additionally, in 1998, GEC Alsthom acquired Sasib Railways, an Italian rail signalling firm and subsidiary of SASIB, which included the former US-based General Railway Signal.

By June 1998, GEC Alsthom went public on the Paris Stock Exchange following the sale of 23.6% stakes each by GEC and Alcatel. It was at this juncture that the company officially adopted the name Alstom.

Alstom (1999–2014)

In 1999, Alstom purchased a 50% interest in ABB's power systems division to form ABB Alstom Power and also acquired Canadian company Télécité, specializing in passenger information and security technologies. That same year, it divested its heavy-duty gas turbine segment to General Electric. The following year, Alstom bought out ABB’s remaining share in ABB Alstom Power.

In 2000, Alstom sold its diesel engine operations—including Ruston, Paxman, and Mirrlees Blackstone—to MAN Group while acquiring a controlling 51% stake in Fiat Ferroviaria of Italy, a pioneer in tilting train technology. By 2003, it had sold its industrial turbine business to Siemens for €1.1 billion.

Facing financial difficulties by 2003 due to weak sales and burdensome debt exceeding $5 billion—primarily stemming from a $4 billion charge linked to a turbine design defect inherited from ABB—Alstom’s share price plummeted by 90% over two years. The European Commission approved a €3.2 billion rescue package involving French government support contingent upon divesting several subsidiaries such as shipbuilding and electrical transmission divisions.

In 2004, the French government acquired a 21% equity stake for €772 million as part of an EU-sanctioned bailout totaling €2.5 billion. Subsequently, Alstom sold its electrical transmission and distribution units to Areva; its diesel locomotive manufacturer Meinfesa to Vossloh; and its power rental operations to APR LLC. Notably, six years later, Alstom reacquired Areva’s electric power transmission business.

The following year saw closure of the Washwood Heath rail vehicle facility and sale of its Australian subsidiary—Alstom Transport Australia and New Zealand—to United Group (UGL), which integrated it into UGL Rail. Manufacturing activities resumed in Australia during the early 2010s.

In 2006, Alstom divested its Marine Division to Norwegian group Aker Yards (later STX Europe) and sold off Alstom Power Conversion (later known as Converteam) through a leveraged buyout financed by Barclays Private Equity France SAS. That same year Bouygues purchased the French government's 21% stake for €2 billion and increased its ownership to 24%.

In 2007, the TGV POS set a new world speed record for rail vehicles at . In March of that year, Alstom acquired Power Systems Manufacturing LLC in Florida from Calpine Corporation for $242 million. By June, it had purchased Spanish wind turbine manufacturer Ecotècnia (rebranded as Alstom Wind) and updated its corporate branding to "alstom" as its commercial identity.

Alstom took a 25% interest in Russian locomotive producer Transmashholding in 2009, raising this stake to 33% by 2015 at a cost near €54 million; however, this holding was reduced to 20% in 2018 after realignment with another partner.

In 2011, Alstom entered into a memorandum of understanding with Iraq for development of a high-speed rail corridor connecting Baghdad and Basra.

Beginning in 2012, construction commenced on passenger rail vehicle manufacturing plants at Sorel-Tracy in Quebec. Following contract awards from EDF and DONG Energy for French offshore wind projects, facilities were established at Cherbourg-en-Cotentin (for turbine blades with LM Power) and Saint-Nazaire (producing nacelles and generators). Additionally, a joint venture was formed with RusHydro for hydropower equipment fabrication; meanwhile, tidal energy company Tidal Generation Ltd was acquired from Rolls-Royce before being sold to GE in 2015.

In November 2013, Alstom announced intentions to raise between €1 billion and €2 billion through divesting non-core assets and potentially selling part of Alstom Transport while implementing workforce reductions totaling approximately 1,300 positions. In 2014, it disposed of steam auxiliary components operations to Triton Partners for €730 million.

Later that year in November 2014, Alstom secured a contract valued at $429.4 million to upgrade 85 trains belonging to Mexico City Metro.

Legal inquiries

Beginning in 2009, the United States Department of Justice (DOJ) initiated an investigation into Alstom's operations for alleged breaches of the 1977 Foreign Corrupt Practices Act, which applies beyond U.S. borders. Alstom initially engaged cooperatively with the inquiry. By 2010, the DOJ’s attention centered on a $118 million contract from 2003 involving Indonesia.

On April 13, 2013, high-ranking official Frédéric Pierucci was detained in New York, charged with deliberate ignorance regarding corruption within the company. He remained in custody for 14 months and was denied bail until shortly before Alstom’s acquisition by the American conglomerate General Electric. Towards the end of 2014, Alstom admitted guilt and incurred a $772 million penalty from the DOJ due to bribery schemes aimed at securing global contracts.

In mid-2014, Alstom Network UK faced allegations from the UK Serious Fraud Office (SFO) concerning corrupt practices connected to transportation contracts in India, Poland, and Tunisia. Additional accusations emerged related to energy contracts in Lithuania as well as deals for the Budapest Metro in Hungary. By December 2018, three executives from Alstom were found guilty of conspiracy to commit corruption linked to bribing Lithuanian officials.

In February 2020, the United Nations listed Alstom in a registry of companies participating in activities supporting Israeli settlements within the occupied West Bank. This inclusion referenced Alstom’s provision of services facilitating settlements and utilization of natural resources such as land and water. Subsequently, on July 5, 2021, Norway’s largest pension fund, KLP, declared its divestment from Alstom alongside other entities named in the UN report.

Divestiture of energy operations to General Electric

On April 24, 2014, news surfaced that American conglomerate General Electric (GE) was negotiating to acquire Alstom for $13 billion, with backing from Bouygues, which owned a 29% stake; this announcement caused an 18% surge in Alstom’s share price within a single day. On April 27, Le Figaro revealed a competing proposal by Siemens, offering a combination of cash and asset exchange—trading Alstom’s power division for part of Siemens’ rail business—matching GE’s financial offer while promising job security. Siemens’ bid, supported by French economic minister Arnaud Montebourg, raised concerns about overlapping product lines and potential antitrust issues within the European Union and was met with investor skepticism.

By April 29, Alstom’s board had accepted GE’s €10 billion offer for its energy segment. GE CEO Jeffrey R. Immelt pledged ongoing investment in Alstom’s French operations and job preservation while proposing to divest its wind energy assets to outside investors. On April 30, Alstom confirmed it was evaluating an offer for its power and grid units valued at €12.35 billion equity (€11.4 billion enterprise value), involving major stakeholders including the French government. GE subsequently confirmed a $16.9 billion bid consisting of $13.5 billion equity value plus $3.4 billion cash.

On May 5, GE extended an offer to purchase shares in Alstom’s Indian power and distribution subsidiaries, contingent upon successfully acquiring Alstom SA. The French government opposed GE’s takeover attempt over concerns regarding the downsizing of Alstom’s rail division, national sovereignty in civil nuclear industries, and safeguarding employment. On May 14, France enacted the "décret Alstom", granting state authorities veto power over foreign acquisitions in strategic sectors such as energy and transport—a move criticized by both French employer federation MEDEF and the European Commissioner for Internal Market.

On June 16, Siemens partnered with Mitsubishi Heavy Industries (MHI) to present a rival bid: Siemens would acquire Alstom’s gas turbine business for €3.9 billion while MHI planned joint ventures acquiring stakes in steam turbines, nuclear operations, electrical grids, and hydroelectric units totaling €3.1 billion; options for additional share purchases and a rail transport joint venture were also included. On June 19, GE amended its offer to align with this price but reduced cash components and proposed joint ventures focusing on renewables and grid technologies; additionally, it offered to divest GE’s rail signalling division to Alstom.

Despite Siemens and MHI raising their bid on June 20, Economy Minister Montebourg threatened to block both proposals. The French government endorsed GE’s offer and negotiated purchasing two-thirds of Bouygues’ shares (approximately 20%). On June 21, Alstom’s board unanimously approved GE’s updated bid. The following day France finalized terms with Bouygues to acquire a 20% stake at a slight discount based on a minimum share price near €35.

The acquisition was anticipated to conclude by early 2015. Regulatory scrutiny by EU competition authorities commenced early that year; by September 2015 both EU and U.S. regulators approved the transaction subject to divestments of specific gas turbine manufacturing and service businesses sold to Ansaldo Energia.

The transfer of Alstom’s energy division to GE was completed on November 2, 2015 at a valuation of €12.4 billion—€9.7 billion paid directly to Alstom with the remainder reinvested into joint ventures. These acquired units were incorporated into GE’s power generation segment (GE Power & Water) under the brand GE Power. Post-sale, Alstom refocused solely on rail transport following its purchase of GE Signalling through a €700 million deal. This acquisition resulted in $17.3 billion goodwill recorded on GE’s balance sheet; however, by October 2018 GE had written off $23 billion related largely to this purchase within its power division.

November 2015 – present

In November 2015, Alstom secured a contract valued at ₹190 billion (approximately US$2.9 billion) from Indian Railways to establish an electric locomotive manufacturing plant in Madhepura, Bihar. This facility is tasked with producing 800 twin-section 9MW locomotives designated for the Eastern Dedicated Freight Corridor. The factory operates as a joint venture, with the Ministry of Railways holding a 26% stake and contributing an investment of ₹13 billion (around US$200 million).

Earlier, in September 2015, Amtrak awarded Alstom a $2.5 billion contract to supply next-generation high-speed trainsets for the Northeast Corridor. This project was projected to create 750 new jobs in upstate New York, including 400 manufacturing roles at Alstom’s Hornell facility. The order for 28 Avelia Liberty trainsets was officially confirmed in August 2016.

In March 2016, Alstom partnered with Gibela to commence construction of a 60,000 m² train manufacturing plant in Dunnotar, near Johannesburg, South Africa. This factory was established under a €4 billion contract awarded in 2013 by the Passenger Rail Agency of South Africa to produce 580 X'Trapolis Mega trains.

By September 2016, Alstom revealed plans to halt locomotive production at its Belfort site by 2018 due to declining order volumes, with remaining manufacturing activities set to shift to its Reichshoffen facility in Alsace. Nevertheless, a French government order worth €650 million in October 2016 for 15 TGV Euroduplex trains, along with 20 locomotives and 30 intercity trains manufactured at Reichshoffen, delayed the planned closure of Belfort.

June 2017 marked the opening of the UK’s largest train refurbishment center by Alstom at Halebank, near Liverpool. The facility initially focused on repainting Class 390 Pendolino trains.

On 12 November 2024, Alstom announced it had delivered the first of 35 fully automated Metropolis trains to Taiwan. This four-car stainless steel train can accommodate up to 700 passengers, including seating for 108, and is capable of reaching speeds up to 100 km/h.

Attempted merger with Siemens Mobility

On 26 September 2017, Alstom proposed a merger with Siemens Mobility, the rail division of German conglomerate Siemens, aiming to form “a new European champion in the rail sector.” The merged company, reportedly named Siemens Alstom and headquartered in Paris, was projected to generate $18 billion in revenue and employ approximately 62,300 staff across over 60 countries.

In November 2018, the European Commission expressed concerns that the merger would lead to excessive market concentration within Europe, potentially resulting in increased fares for passengers and higher freight charges. These apprehensions arose amidst protests against French railway reforms and restructuring at SNCF. The merger was viewed as a strategic response to the growing influence of Chinese rail manufacturer CRRC and had backing from both French and German government representatives.

Although initially anticipated to conclude by the end of 2018, the transaction encountered resistance from French labor unions worried about potential job reductions. Despite overwhelming shareholder approval secured in July 2018, the European Commission ultimately blocked the merger on 6 February 2019. Alstom CEO Henri Poupart-Lafarge criticized this outcome as being influenced by “ideological prejudices.”

Bombardier Transportation Acquisition

In February 2020, Alstom entered into a Memorandum of Agreement to purchase Bombardier Transportation, the international rail manufacturer headquartered in Berlin, Germany, for a sum ranging between €5.8 billion and €6.2 billion. This acquisition was contingent upon receiving consent from both Alstom’s shareholders and European regulatory bodies. The principal shareholder of Bombardier, Caisse de dépôt et placement du Québec, had already approved the transaction.

By July 2020, the European Union's competition authorities granted approval for the acquisition, imposing conditions that required Alstom to divest the Alstom DDF plant located in France, a regional train division, as well as a Bombardier facility in Germany and one of Bombardier’s train divisions. Furthermore, Alstom was obligated to provide assurances and transfer certain Bombardier assets to finalize the deal.

Electric Road Technology

Alstom has engineered a ground-level power supply system (APS) designed for buses and various other vehicles. This technology underwent testing to ensure operational compatibility with snow removal equipment and safety performance under winter conditions such as snow, ice, salting, and exposure to brine. The eRoadMontBlanc initiative aims to pilot Alstom’s electric road system on the public RN205 highway in the Rhône-Alpes region between 2024 and 2027, representing France’s inaugural public electric road intended for trucks and other vehicles.

Debt Restructuring in 2024

In 2024, Alstom planned to raise €1.75 billion through the issuance of shares and bonds as part of a strategy to decrease its debt burden, which faced potential downgrading to junk bond status by credit rating agencies.

Divestiture of U.S. Rail Signalling Business in 2024

In September 2024, Alstom completed the sale of its American rail signalling operations to Knorr-Bremse for $690 million.

Transport

Alstom Transport provides an extensive portfolio of railway systems, equipment, and services, generating annual revenues of €5.5 billion in 2013. It ranks among the leading global producers of high-speed trains, trams, metros, electric and diesel trains, traction and information systems, power supplies, and track infrastructure. The division is also responsible for designing and implementing rail infrastructure projects including electrification, communication networks, track installation, station facilities, workshops, and depots. Its offerings encompass maintenance and refurbishment services as well. Operating across 70 countries with a workforce of 26,000 employees, Alstom Transport maintains a significant international presence.

Notable products include over 650 TGV high-speed trainsets delivered over a span of 25 years, London Underground's 1995 and 1996 Stock trains, British Rail Class 390 units, and the AGV high-speed train. After merging with General Railway Signal in 1998, Alstom produced signalling equipment initially in New York before shifting manufacturing operations to Missouri following its acquisition of GE signalling; the original facility continued to perform engineering functions.

Following its acquisition of Fiat Ferroviaria in 2002, Alstom began manufacturing Pendolino tilting trains. By 2007, its Citadis trams were operational in more than 28 cities worldwide including Dublin, Algiers, Barcelona, Melbourne, Rotterdam, and Paris.

Between 2007 and 2010, Alstom built 1,002 R160A subway cars for New York City at its Hornell facility; the car bodies were fabricated in São Paulo. In 2013, it secured a contract valued at ₹1,470 crore to supply 168 coaches for Chennai Metro and currently holds the contract for Kochi Metro coaches.

In September 2015, Amtrak awarded Alstom a $2.45 billion contract for next-generation high-speed trainsets on the Northeast Corridor. This project generated around 750 jobs in upstate New York including approximately 400 direct manufacturing roles at Hornell. These new trainsets incorporate active tilting technology and are capable of reaching speeds up to 186 mph. Although initially planned for service commencement by 2023 with an order of 28 sets, only half had been constructed by spring 2025 and were still undergoing testing.

Alstom is advancing its next-generation high-speed train lineup under the Avelia brand family: ETR 675, Avelia Horizon, and Avelia Liberty.

The Ottawa Light Rail Transit (LRT) system's Alstom Citadis Spirit vehicles are produced at Hornell with final assembly completed in Ottawa and Brampton, Ontario.

Catalogue of Rolling Stock Produced by Alstom

Electric Multiple Units (EMU) and Diesel Multiple Units (DMU)

Locomotives

Metro/Subway

  • Rolling stock for Paris Metro featuring:
  • Caracas Metro units such as Alsthom Atlantique and Alstom-Bombardier series
  • The Alstom Metropolis range with variants like C751A, C751C, C830 series, C851E deployed in cities including Barcelona, Buenos Aires, Caracas, Amsterdam, Sydney, and Montreal
  • Bay Area Rapid Transit C1 Series
  • London Underground rolling stock: 1995 and 1996 Stock
  • New York City Subway cars including R68 (joint venture) and R160A models
  • Washington Metro's 6000-series

Light Rail / Trams

Passenger Coaches


Power Generation

Alstom Power Systems specialized in the design, manufacturing, servicing, and supply of equipment across power generation and industrial sectors. Its portfolio spanned gas, coal-fired, nuclear, hydroelectric, and wind power technologies. Core products included boilers, steam turbines, gas turbines, wind turbines, generators, alongside air quality management and monitoring solutions—emphasizing boiler systems and emissions control.

Service offerings involved upgrading nuclear and fossil-fuel steam turbines, power plant refurbishment projects, plus maintenance contracts extending over long durations for both Alstom’s own turbines as well as those from GE and Siemens.

In Russia, Alstom operated a joint venture with Atomenergomash to maintain nuclear equipment and contributed to floating nuclear power plant initiatives. In Brazil, collaboration with Bardella at the company Indústria Metalúrgica e Mecânica da Amazônia focused on hydroelectric developments throughout the Amazon basin and Latin America. In India, a partnership with Bharat Forge managed comprehensive power generation solutions.

General Electric acquired the entire power division of Alstom in 2015.

Alstom Grid

Established on 7 June 2010 following the acquisition of Areva SA's transmission division, Alstom Grid specialized in manufacturing equipment spanning the entire electrical power transmission spectrum, including ultra-high voltage AC and DC transmission lines. The company was based in La Défense, Paris, and structured its operations into four primary segments: electrical transmission system products, power electric systems, automation, and service.

Alstom Grid commanded nearly 10% of the worldwide market share in power transmission equipment. In 2015, this division was purchased by General Electric and subsequently renamed GE Grid Solutions.

Financial information

Upon its initial public offering on 22 June 1998, Alstom was listed simultaneously on the London, New York, and Paris Stock Exchanges. After undergoing financial restructuring in 2003, the company maintained its listing solely on the Paris Stock Exchange, while it withdrew from the London Stock Exchange in November 2003 and the New York Stock Exchange in August 2004.

Sources

External links

  1. ↑ Sources:
    • Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
    • Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
    • Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
    • Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
Retrieved from "https://www.alfawiki.org/index.php?title=Alstom&oldid=38132"