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October 26th, 2011

The project is based on Talgo technology and consolidates the company and the leadership of Spanish model in the High speed worldwide

Madrid, October 26, 2011.- The award of this project to the Spanish consortium is an overall sum of about 6,500 million euros. This contract entails an order of 1.600 million euros for Talgo, which may reach 2.400 million euros when implementing further options.

The project, awarded to a consortium involving other eleven companies, in based on Talgo technology and consolidates the company, and the Spanish model as a leader in High Speed worldwide

Such award consolidates the internationalization process started by Talgo in 2007 which has been also successful with major contracts in Kazakhstan, Uzbekistan, USA and Russia. 83% of the new contracts awarded to Talgo in 2010 came from the international market.

According to Carlos Palacio Oriol, President of Talgo, “the award of this major contract is a milestone for the Spanish industry and technology which allows Talgo to fulfill the internationalization strategy, in addition to future international tendering processes of high speed projects in other parts of the world. At present, Talgo is commercially active in 25 other countries worldwide

The  train offered

The train offered is the high-speed Talgo 350 ‘El Pato (Duck shape). It is the latest high speed train sold in Spain, with 50% of market share in this segment, which in our country runs in the routes Madrid-Málaga, Madrid-Valencia, Madrid-Valladolid and transverse routes Barcelona-Málaga and Barcelona-Sevilla.

The Spanish Consortium has been awarded 35 trains and 12 years of maintenance services with a future purchase option of 23 additional trains.

Trains will be manufactured in the various Talgo plants in Spain.

 The Tender

The HHR (Haramain High Speed Railway) is a high speed train which covers 450 kms, connecting Medina and Mecca, intended for pilgrims who will travel between the two Muslim holy cities. It is estimated that during pilgrimage periods, the trains will have an average occupancy of 166.000 passengers.

The project consists of manufacturing of rolling stock and the development of a "super structure" - track, catenary and signaling elements- in addition to other civil work operations - building of a control operational plant, high and low voltage supply, catenary, track, signaling, etc.- Also involving the trains operation and maintenance of the aforementioned systems.

The tender started on October 1, 2006 and was divided into two phases: one for civil works, and other for the manufacturing of the rolling stock and super-structure, operation and maintenance. In this second phase, besides the Spanish consortium, other four were pre-qualified, German, Korean, Chinese and French. At last, the finalists were the Spanish and the French consortium. A more compelling financial bid and technical bid of equal quality based on Talgo technology were finally tipped the balance in favor of the Spanish consortium

Spanish consortium

The Spanish consortium, composed of Talgo and other eleven Spanish companies (RENFE, Adif, OHL, Copasa, Dimetronic, Inabensa, Cobra, Indra, Imathia, Ineco and Consultrans) and two local partners (Alshoula and Al Rosan), which will operate these lines during the twelve years following the start of passenger services.

This is the first case of the Spanish high speed model implementation in a joint offer of public and private companies. For the whole of Spain it is an export project valued at around 6.500 M €, which will contribute to the Spanish high-tech export, job creation and, as a whole, increase Spanish industrial activity.