Alstom SA (French: [alstɔm]) is a French multinational rail transport systems manufacturer. It is active in the fields of passenger transportation, rail services, signalling, and locomotives, producing high-speed, suburban, regional and urban trains along with trams.
The company and its name (originally spelled Alsthom) were 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) (sold in 2006), and parts of ACEC (late 1980s).
Contents
History
Alsthom (1928–1989)
Alsthom (at the time, with an 'h' in the word) 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 Constructions électriques de France, 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 380 kilometres per hour (240 mph)) and in 1990 (at 515.3 kilometres per hour (320.2 mph)). It also set the world endurance record for high-speed train lines in 2001, travelling the 1,067.2 kilometres (663.1 mi) 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. 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 to General Electric its heavy-duty gas turbine business (GE license design) 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. In 2010, Alstom re-acquired the electric power transmission division of Areva.
In 2005, the former Metro-Cammell rail vehicle works in Washwood Heath closed. 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.
Sale of energy businesses to General Electric
On 24 April 2014, unconfirmed reports claimed that US conglomerate General Electric (GE) was in acquisition talks with Alstom for $13 billion with the support of 29%-shareholder Bouygues, causing Alstom's share price to rise 18% in one day. On 27 April, Le Figaro reported that a rival 'cash plus asset swap' offer was issued by Siemens, trading Alstom's power business for part of its rail arm, plus a cash offer as good as GE's and job guarantees. Siemens' bid was reportedly promoted by French economic minister Arnaud Montebourg. Siemens and Alstom had a greater product overlap and thus a greater risk to jobs, along with potential issues with EU competition regulators. Siemens' offer was characterised as "defensive", being skeptically received by investors and analysts.
On 29 April, Reuters reported that Alstom's board had accepted a €10 billion bid by GE for its energy division; In a letter from GE executive Jeffrey R. Immelt to President François Hollande published in Les Echos, Immelt gave assurances about continued investment in Alstom's French activities, the security of the civil nuclear sector, and on job commitments made by Alstom Wind, whilst making its wind activities available to investors. On 30 April, Alstom confirmed that an offer for its power and grid divisions (representing an equity value of €12.35 billion, €11.4 billion enterprise value) was under review with key interests including the French state. On 30 April, GE confirmed it had made a $16.9 billion offer, comprising a $13.5 billion value plus $3.4 billion cash. On 5 May, GE offered to buy one-fourth of the shares in Alstom's Indian power and distribution companies – Alstom T&D India and Alstom India – at 261.25 and 382.20 rupees a share (value US$278 million and $111 million respectively) subject to its bid for Alstom SA being successful.
On 5 May 2014, the French government stated it did not back GE's bid, citing concerns on the future of Alstom's rail division as a smaller separate entity, suggesting that GE transfer its own rail division to Alstom; other concerns were over the civil nuclear field's national independence, and French jobs. On 14 May, France issued a decree (Décret n° 2014-479 du 14 mai 2014.), nicknamed "décret Alstom", extending to power of the state to veto the takeover of "strategic interests" into areas of energy supply, water, transport, telecoms and public health. Both the French employer organisation MEDEF and the European Commissioner for Internal Market and Services (Michel Barnier) responded negatively to the decree.
November 2015 – present
In November 2015, Alstom was awarded a contract by the Indian Railways to construct an electric locomotive factory in Madhepura (Bihar), receiving an initial order of 800 twin-section 9MW locomotives for use on the Eastern Dedicated Freight Corridor, valued at ₹190 billion (about US$2.9 billion). This factory was to be operated under a joint venture with the Ministry of Railways (26%) at a cost of ₹13 billion (roughly US$200 million).
In September 2015, it was announced that Amtrak would award Alstom a contract for $2.5 billion for the next generation high-speed train sets for the Northeast Corridor. This would result in the creation of 750 jobs across upstate New York with 400 direct manufacturing jobs at Alstom. The order for 28 Avelia Liberty trainsets was officially confirmed in August 2016 by Amtrak. These trainsets are manufactured at Alstom's plant in Hornell, New York.
In March 2016, a joint venture of Alstom and Gibela began construction of a new 60,000 square metres (650,000 sq ft) train building factory in Dunnotar, outside of Johannesburg, South Africa. Initial orders for the factory included 580 X'Trapolis Mega passenger trains for Passenger Rail Agency of South Africa under a €4 billion contract that was awarded in 2013.
In September 2016, Alstom announced it was to cease locomotive manufacturing at its Belfort (France) site by 2018 due to low orders; remaining production activity was to be transferred to its facility of Alstom DDF in Reichshoffen, Alsace. However, during October 2016, the French state placed an order of about €650 million for 15 TGV Euroduplex trains; an order for 20 locomotives; plus an order for 30 intercity trains to be built at Reichshoffen. Together, these orders were sufficient to prevent the Belfort plant's closure in the short to medium term.
In June 2017, Alstom opened the largest train modernisation facility in the UK at Halebank on the outskirts of Liverpool. Initial work involved the repainting of the Class 390 Pendolinos.
On 12 November 2024, Alstom announced on their official website that the first of 35 fully automated Metropolis trains has been delivered to Taiwan. The four-car stainless-steel train can carry up to 700 passengers, including 108 seated, with speeds up to 100 km/h.
Products
Alstom Transport develops and markets a complete range of systems, equipment, and service in the railway industry. The division had annual sales of €5.5 billion in 2013. It is one of the world's largest manufacturers of high-speed trains, tramways and metros, electrical and diesel trains, information systems, traction systems, power supply systems, and track work. The company also operates in the rail infrastructure market, designing, producing, and installing infrastructure for the rail network. These include information solutions, electrification, communication systems, track laying, station utilities, as well as workshops and depots. Maintenance, rebuilding, and renovation services are also provided by the company. Alstom Transport operates in 70 countries and employs 26,000 people.
Notable products includes series production of the TGV high-speed trains with over 650 trainsets sold over 25 years, as well as the London Underground 1995 Stock, London Underground 1996 Stock, British Rail Class 390 and AGV.
Since a merger with General Railway Signal in 1998, Alstom has been manufacturing railway signaling equipment at a former GRS factory located in a suburb near Rochester, New York. After the merger with GE signaling the manufacturing was transferred to Missouri, and GRS factory kept engineering the GRS legacy products.
Since 2002, Alstom has manufactured the Pendolino tilting train, following the acquisition of Fiat Ferroviaria.
The company also produces Citadis trams; in 2007, over 1,100 Citadis trams were in use by 28 cities including Dublin, Algiers, Barcelona, Melbourne, Rotterdam and Paris.
Between 2007 and 2010, the company produced 1,002 R160A New York City subway cars at its manufacturing plant in Hornell, New York, while the body shells were built at their Lapa plant, in São Paulo, Brazil. In 2013, Alstom was awarded the contract to supply 168 coaches to Chennai Metro at a cost of ₹1,470 crore (US$150 million). The company also owns the tender for supplying coaches to Kochi Metro.
In September 2015, it was announced in Hornell, New York, by Senator Charles Schumer (D-NY) that Amtrak will be awarding Alstom a contract for $2.45 billion for the next-generation high-speed train sets for the Northeast Corridor. This would result in the creation of 750 jobs across upstate New York with 400 direct manufacturing jobs at Alstom. The new trainsets will be able to reach speeds up to 186 mph (300 km/h) and feature active tilting technology. The 28 new train sets were scheduled to enter service by 2023, but only 14 of the 28 have been built as of Spring 2025. The first five trainsets entered service on August 28, 2025.
Other products
Alstom has developed a ground-level power supply (alimentation par le sol - APS) system for use with buses and other vehicles. The system has been tested for compatibility with snow plows and for safety under exposure to snow, ice, salting, and saturated brine. The eRoadMontBlanc project is set to trial Alstom's electric road system on the public road RN205 on trucks and other vehicles in the Rhône-Alpes region between 2024 and 2027. This is anticipated to be the first public electric road in France.
Former businesses
Power generation
Alstom power activities were collectively called Alstom Power Systems and included the design, manufacturing, services, and supply of products and systems for the power generation sector and industrial markets. The group covered most energy sources, including gas, coal, nuclear, hydro, wind. Power Systems provided components for power generation including boilers, steam turbines, and gas turbines, wind turbines, generators, air quality control systems, and monitoring and control systems for power plants, as well as related products. It had a special focus on boilers and emissions control equipment.
Power Systems also provided services such as product retrofitting for nuclear and fossil steam turbines and refurbishment of existing power plants. It performed maintenance and servicing under long-term agreements for its own turbines, as well as those manufactured by GE and Siemens.
In Russia, the company serviced nuclear equipment under a joint agreement with Atomenergomash and provided technology transfer for a project of floating nuclear power plants. In Brazil, Alstom, together with Bardella, ran a joint venture called Indústria Metalúrgica e Mecânica da Amazônia to build hydroelectric power plants throughout the Amazon and Latin American regions. In India, Alstom had a joint venture with Bharat Forge to manage power production from start to finish.
In 2015, the entire power sector was taken over by General Electric.
Alstom Grid
A third business section based on power transmission was formed on 7 June 2010 with the acquisition of the transmission business of Areva SA. The division manufactures equipment for the entire chain of electrical power transmission, including ultra-high voltage transmission lines (both AC and DC).
Alstom Grid is headquartered at La Défense, the business district west of Paris, and has four main businesses: electrical transmission system products, power electric system, automation, and service. Alstom Grid has roughly 10% of the global market share.
In 2015, the grid division was taken over by General Electric and renamed as GE Grid Solutions.
Financial information
Alstom was listed on the London, New York and Paris Stock Exchanges when it was floated on 22 June 1998. Following the financial reconstruction in 2003, the company remained listed on the Paris Stock Exchange, but was delisted from the London Stock Exchange on 17 November 2003 and the New York Stock Exchange in August 2004.