Alstom DDF

Alstom SA () is a French multinational rolling stock manufacturer which operates worldwide in rail transport markets. It is active in the fields of passenger transportation, signaling, and locomotives, producing high-speed, suburban, regional and urban trains along with trams.

The company and its name (originally spelled Alsthom) was formed by a merger between the electric engineering division of Société Alsacienne de Constructions Mécaniques (Als) and Compagnie Française Thomson-Houston (thom) in 1928. Significant acquisitions later included the Constructions Électriques de France (1932), shipbuilder Chantiers de l'Atlantique (1976), and parts of ACEC (late 1980s).

A merger with parts of the British General Electric Company formed GEC Alsthom in 1989. Throughout the 1990s, the company expanded its holdings in the rail sector, acquiring German rolling stock manufacturer Linke-Hofmann-Busch and Italian rail signaling specialist Sasib Railways. In 1998, GEC Alsthom was listed on the Paris Stock Exchange and, later that year, it was rebranded Alstom. At the time, the company was manufacturing railway rolling stock, power generation equipment and ships.

In 2003, the company required a €3.2 billion bailout from the French government. As a result, Alstom was compelled to dispose of several of its divisions, including shipbuilding and electrical transmission to Areva, in order to comply with European Union rules on state aid. In 2004, Alstom remained in financial difficulties, having incurred massive unexpected costs (€4 billion) arising from a design flaw inherited from the acquisition of ABB's turbine business, in addition to losses in other business sectors.

In 2014, General Electric (GE) announced that it reached a deal to purchase Alstom's power and grid divisions for US$17 billion (€12.4 billion). The deal came under heavy scrutiny from French regulators who saw the business as a strategically important domestic industry. To secure approval, GE agreed to form joint ventures with French companies in power generation and transmission, Alstom's heavy gas turbine business was sold to Ansaldo Energia, and GE agreed to sell Alstom's rail signalling business. The deal was finalised in November 2015; since then, Alstom has been operating solely in the rail sector.

In an attempt to grow its rail business, in late-2017, Alstom announced a proposed merger with Siemens Mobility. However, in February 2019, the European Commission prohibited the merger. Subsequently, in February 2020, the company signed a letter of agreement to purchase the transportation division of the financially struggling Bombardier Inc. The purchase was finalized in January 2021.

History

Alsthom (1928–1989)

Alsthom was founded in 1928 from the merger of the French heavy engineering subsidiary of the Thomson-Houston Electric Company, the Compagnie française Thomson Houston, CFTH, and of the Société Alsacienne de Constructions Mécaniques. In 1932, Alsthom expanded into transportation by acquiring the , Tarbes, a manufacturer of electric locomotives as well as electrical and hydraulic equipment.

In 1969, Compagnie Générale d'Électricité (CGE) became the majority shareholder of Alsthom. In 1976, Alsthom merged with Chantiers de l'Atlantique, becoming Alsthom Atlantique. Thus, the business expanded into marine. The next year, it constructed the first 1300 MW generator set for the Paluel Nuclear Power Plant, setting a world record with an output of 1500 MW.

In 1978, Alsthom delivered its first TGV to SNCF. The TGV went on to break world rail speed records in 1981 (at ) and in 1990 (at ). It also set the world endurance record for high-speed train lines in 2001, travelling the from Calais to Marseille in 3 hours and 29 minutes. In 1986, Alsthom Belfort received an order from EDF for the largest gas turbine in the world (212 MW).

In 1988–89, the holding company, CGEE Alsthom, acquired ACEC Énergie (hydroturbines and electrical equipment for the nuclear industry) and ACEC Automatisme (automation) from the dissolution of the Belgian electrical engineering company Ateliers de Constructions Electriques de Charleroi. Alsthom acquired 100% of ACEC's transport division and renamed it ACEC Transport.

GEC Alsthom (1989–1998)

In early 1989, GEC Alsthom was formed from a 50–50 merger of Alsthom and the Power Systems Division of the British General Electric Company; for Alsthom this move was intended to aid Alsthom in selling its products outside the French market. International Directory of Company Histories (1994) In May of that year GEC Alsthom bought British rail vehicle manufacturer Metro-Cammell.

During the early-1990s, GEC Alsthom was the principal manufacturer of the British Rail Class 373, a variant of their TGV family specially designed for traversing the Channel Tunnel between the UK and France. Although collectively operated by Eurostar, the type was ordered by three different railway companies: 16 by SNCF, four by NMBS/SNCB, and 18 by British Rail, of which seven were shortened ''North of London'' sets. The first Class 373 set was completed at GEC Alstom's Belfort facility during 1992.

In 1994, GEC Alsthom acquired a 51% shareholding in Linke-Hofmann-Busch from Salzgitter AG. In 1995, the company acquired the remaining shares in the steam turbine manufacturer MAN Energie. In early 1998, GEC Alsthom acquired the electrical contractor Cegelec, renaming it ''Alstom Power Conversion''.

In 1998, GEC Alsthom bought Italian firm SASIB's rail signalling subsidiary ''Sasib Railways'', which included the former General Railway Signal (USA).

In June 1998, GEC Alsthom was listed on the Paris Stock Exchange; both GEC and Alcatel elected to sell off part of their stakes (23.6% each). Around this time, the company was officially renamed ''Alstom''.

Alstom (1999–2014)

In 1999, Alstom bought half of ABB's power systems division, forming a 50-50 joint company known as ABB Alstom Power. Alstom also bought Canada's Télécité, a passenger information and security solutions company, and sold its heavy-duty gas turbine business to General Electric. The next year, the company bought out ABB's share in the former joint venture ABB Alstom Power.

In 2000, Alstom sold its diesel engine businesses ( Ruston, Paxman, and Mirrlees Blackstone) to MAN Group. It also acquired a 51% stake in Italian rail manufacturer Fiat Ferroviaria, a world leader in tilting technology. In April 2003, Alstom sold its industrial turbine business to Siemens for €1.1 billion.

By 2003, Alstom was facing a financial crisis caused by a mix of poor sales and over $5 billion of debt liabilities. It reportedly had the potential to force the company's liquidation. These heavy debts were largely due to a $4 billion charge over a design flaw in a turbine developed by ABB, acquired by Alstom in 2000, as well as the collapse of customer Renaissance Cruises amid a general downturn in the marine market. Alstom's share price had dropped by 90% over two years. The European Commission objected to a €3.2 billion rescue plan involving the French state; European Union competition law bans most state aid without EC permission. This was obtained, but required Alstom to sell several of its subsidiaries, including its shipbuilding and electrical transmission assets.

In 2004, the French state took a 21% stake in Alstom for €772 million and Alstom received an EU-approved bailout worth in total €2.5 billion. The company sold its electrical transmission and distribution ("grid") activities to Areva, the diesel locomotive manufacturer Meinfesa to Vossloh, and Alstom Power Rentals to APR LLC. Six years later, Alstom re-acquired the electric power transmission division of Areva.

In 2005, the former Metro-Cammell rail vehicle works in Washwood Heath closed.Alstom withdraws from train assembly in British ''International Railway Journal'' July 2003 page 4 In the same year, Alstom sold its Australian subsidiary, Alstom Transport Australia and New Zealand, to United Group, which became part of the latter's UGL Rail division. Alstom would restart its manufacturing operations in Australia by the early 2010s.

In 2006, Alstom sold its Marine Division to the Norwegian group Aker Yards, with a commitment to retain 25% of the shares until 2010; it also sold Alstom Power Conversion, which became Converteam, in a leveraged buy-out deal funded by Barclays Private Equity France SAS.

In June 2006, Bouygues acquired the French government's 21% holding in Alstom for €2 billion. Later that year, Bouygues elected to increase its shareholding in the firm to 24%.

In 2007, the TGV POS set the world speed record for rail vehicles of . In March, Alstom acquired ''Power Systems Manufacturing LLC'' (Florida, USA) a manufacturer of gas turbine components from Calpine Corporation for $242 million. In June, Alstom acquired the Spanish wind turbine manufacturer Ecotècnia, renamed as Alstom Ecotècnia (since 2010 Alstom Wind). The company also adopted a new graphic chart (logo, corporate identity) using "alstom" as its trading name, reserving "Alstom SA" for legal documents.

In 2009, Alstom acquired a 25% stake in the Russian locomotive manufacturer Transmashholding. Six years later, Alstom decided to increase its shareholding in Transmashholding to 33% at a reported cost of €54 million. As a consequence of an alignment agreement between Transmashholding and another entity, LocoTech-Service, Alstom's stake in the former decreased to 20% in August 2018.

In 2011, Alstom and the Iraqi government signed a memorandum of understanding regarding the construction of a new high-speed rail line between Baghdad and Basra.

In 2012, Alstom opened construction of factories at Sorel-Tracy, Quebec, Canada (passenger rail vehicles). After a consortium of Alstom ( Alstom Wind), EDF, and DONG Energy was awarded three major French offshore wind farm contracts, the company initiated construction of factories at Cherbourg-en-Cotentin

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