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French rail operator Transilien SNCF Voyageurs halts Alstom's new train deliveries

Transilien SNCF Voyageurs, France's national rail operator, confirmed Monday that it would suspend the deliveries of trains from Alstom SA to Paris' RER system. The company cited high failure rates and poor manufacturing.

Alstom was not available to comment immediately on the 4.2% decline in its shares at 1412 GMT.

These orders are part of a 2027 framework agreement between SNCF Voyageurs, Alstom and Ile-de-France Mobilites. This authority regulates public transport operators in Paris and its surroundings. 166 RER NGs are currently in production.

Transilien SNCF Voyageurs said in an emailed message that the failure rate of Alstom's RER New Generation trains remains above target.

Transilien stated that "the poor manufacturing quality observed in the newly delivered trainsets has a too great impact on the service...on E line of RER."

It added that the suspension of Alstom deliveries would remain in effect "until contract targets have been achieved". The move, it said, was intended to "stabilize the operating situation" and "reinforce Alstom’s efforts to improve reliability of RER NGs currently in service".

Alstom was ordered by SNCF Voyageurs to build 35 additional RER NG trains in December last year. The deal is worth approximately 520 million Euros ($562.59 Million).

(source: Reuters)