HITACHI Rail Europe is upping efforts to secure more work for its new plant in the North-East after it failed to win a lucrative contract in Germany. 

The Japanese firm bid to manufacture 60 commuter trains for Deutsche Bahn at its factory in Newton Aycliffe, County Durham which opens in 2016.

Failure to secure the contract, which is worth up to £280m, delivered a blow to Hitachi's attempt to build up an order book that will secure the long-term future of its £82m Aycliffe plant and 730 workers.  

Last week, Sedgefield Labour MP Phil Wilson urged the Government to extend the deal for Hitachi to make a fleet of trains for the East Coast Main Line under the Intercity Express Programme (IEP). 

The initial order is for the plant to produce about 600 carriages but Mr Wilson, who played a leading role in the Hitachi plant coming to his constituency, wants ministers to approve an option for an additional 270 carriages to be made in Aycliffe for the IEP. 

Confirmation that Bombardier's factory in Germany will make the trains for Deutsche Bahn increases the need for Hitachi to secure more orders in the UK and across Europe. 

“Hitachi Rail Europe has learned that our bid to provide 60 trains for the S-Bahn in Hamburg has been unsuccessful," said Alistair Dormer, the firm's  executive chairman and chief executive. 

"We believe that we provided a technically complex and competitive proposal, however we accept the decision made by Deutsche Bahn. Following this announcement, we will carefully evaluate how we can improve our bids in the future. Germany with its central position in Europe remains an important market for Hitachi Rail Europe.

"We will continue to bid for contracts in continental Europe to win more orders for our manufacturing plant in Newton Aycliffe,” he added.