UK train-maker Bombardier, which lost out to Germany for a lucrative order, has won a new £188 million contract, it was announced today.
The Department for Transport, heavily criticised for preferring Siemens of Germany to Derby-based Bombardier for the previous - Thameslink - contract, is providing £80 million for the new deal with the Southern train company.
Bombardier, which announced hundreds of jobs losses after failing to win the Thameslink deal, will build 130 new rail carriages for Southern which runs services in south London, Surrey, Sussex and Kent.
The new carriages are due to enter service in December 2013.
The row over the Siemens-Bombardier battle for the Thameslink contract prompted the Government to look at the whole question of future rail procurement.
The Government funding for the Southern deal came from money made available following last month's Autumn Statement by Chancellor George Osborne.
Transport Secretary Justine Greening said: "This deal for more than 100 new carriages is great news for rail passengers and brilliant news for Bombardier and Derby.
"It lands Bombardier with a crucial train order and I look forward to Bombardier workers in Derby being among the winners of this important deal.
"This deal, helped along by my department, shows my determination to invest in Britain's railways: our support for Southern will boost capacity while helping British jobs. I can't think of a better outcome."