CAF Group is studying what actions to take after 'losing' the largest contract in its history

The free trade spirit that permeates Europe at the behest of the EU's putative father, the United States, is in question. The reason for the dispute originates from a contract involving the CAF Group.

The Basque company was celebrating having secured the largest order in its history. But the contract worth more than 1.7 billion euros that it was going to secure in Belgium has been frozen. The designation has been halted due to pressure from its rival, the French giant Alstom.

Alstom creates jobs in Belgium and could lay off 800 workers

The Belgian Council of State has frozen this contract that could have exceeded 3 billion. It does so because the public company SNCB did not explain the methodology used in the designation. The contract involves replacing 600 regional trains called AM30 that connect Belgium with French, German, or Luxembourg stations.

The resolution of the rolling stock contract could be postponed for a year to CAF's dismay. The company based in Beasain submitted a technical offer 4% superior to Alstom's. But the French company claims that its offer was 107 million euros cheaper than the Basque proposal, notes Grupo Noticias.

Alstom employs 3,000 Belgians, and its Bruges plant, consisting of 800 workers, is at risk starting in 2026. It is worth remembering that with the contract's workload, its maintenance would be guaranteed for more than a decade.

SNCB has expressed its anger and says that the EU prevents "granting an advantage to local production, within the European framework, in any form, in order to attribute a higher score to a bidder that, for example, guarantees certain local production." Regarding doubts about the methodology, it says that it was already "stipulated in advance in the specifications and with total transparency that the choice would be made based on the best quality-price ratio."

"The preferred option doesn't have to be the lowest offer. Instead, the difference in points obtained by a better qualitative offer can compensate for the difference with a cheaper offer. This is what happened here. Although the point difference may seem minimal, for SNCB it is very important. A better quality offer could, for example, reduce potential problems when executing and fulfilling the contract," they added.

Industry sources acknowledge that Alstom's arguments are weak. But the political and legal uproar caused by the contract suspension could invite CAF to defend the contract tooth and nail. Or to show flexibility in order to generate jobs in the country from which they were going to gain so much profit.

Blow in its best historical moment

The CAF Group is experiencing its best historical moments despite the reputational problems it suffers in Euskadi and Navarra. These wounds are motivated by the decision of its leadership not to withdraw from the construction of the Jerusalem Tram. It does so despite the genocide that Israel is subjecting the Palestinian people to.

The company headquartered in Beasain enjoys a great situation after increasing its revenues by 10% in 2024 to 4.212 billion euros. Its profits were 103 million euros, which represented a 16% increase over the previous year.

CAF has broken sales and order records in the past fiscal year. Meanwhile, its bus subsidiary Solaris is thriving. This company, with operational headquarters in Poland, has sold 107 trolleybuses to the Canadian transport operator TransLink in the city of Vancouver for 120 million euros.

It has also signed contracts with Polish operators MZA Warsaw and MPK Poznań for the supply of 50 and 17 electric buses respectively. In return, they will achieve a combined volume exceeding 50 million euros. Additionally, it will supply 170 buses to a Swedish company Nobina Sverige in exchange for 100 million euros.

Anger among the workforce over Israel

A few weeks ago, CAF's own works council stated that "all the crimes in which CAF collaborates have also been recognized by the International Court of Justice in 2024 in an opinion that declares the Israeli occupation of Palestine illegal. And it obliges States (by omission also the institutions of that State) to prevent establishing economic or commercial relations with Israel in relation to the occupied Palestinian territory or parts of it that may strengthen its illicit presence in the territory."

The signatories of the manifesto demanded that CAF comply with international law, withdraw from the Jerusalem Tram project. "And thus stop being complicit in the occupation of Palestine." "We demand that Basque institutions, mainly the Basque Government as a shareholder of CAF, withdraw their support for CAF while it doesn't comply with international legality," they added.