There are reports that Hitachi, the Japanese train manufacturer, has lost out on a £500m contract to build trains for the Tyne and Wear Metro in Newton Aycliffe, County Durham.
Neither Hitachi or Nexus, the Metro operator, have commented on the outcome of the procurement process.
A spokesperson for both companies said the successful bidder will be officially announced in January.
Ben Houchen, the Tees Valley Mayor, said the news was "appalling."
Hitachi's Newton Aycliffe employs 700 people. It opened in 2015, costing £82 million.
Last year Hitachi failed to secure a £1.5bn contract to supply trains for the London Underground.
In March 2019 the company signed a £100m deal with FirstGroup to manufacturer five intercity electric trail for use on the East Coast Coast Main Line.
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