Italo announces €3 billion deal with Siemens to buy trains for Germany

ROME, July 20 (Reuters) - Italian rail operator Italo Holding said on Monday it had signed a contract worth around €3 billion with Siemens Mobility to buy 26 high-speed trains, with an option for 14 more, to support its planned 2028 entry in the German market.

The company's total €3.6 billion ($4.12 billion) investment in Germany will see services begin on two main German corridors by mid-2028, introducing new competition to one of Europe's largest rail markets.

• The agreement with Siemens Mobility for the trains also includes a 30-year maintenance contract.

• Operations are planned to launch in mid-2028, running 50 daily services connecting 18 cities on the Munich-Cologne-Dortmund and Munich-Berlin-Hamburg corridors.

• Italo expects to create 2,500 around jobs in Germany, including in the supply chain, and to invest in train stations and IT infrastructure.

• The trains will be manufactured at Siemens' Krefeld plant and maintained at its depot in Dortmund.

• Germany's network regulator last month presented a proposal to limit Deutsche Bahn's use of long-distance rail capacity on some congested routes, opening the way for rivals like Italo.

($1 = €0.8747)

(Reporting by Antonella Cinelli, editing by Alvise Armellini)