A multi-million pound contract to build hundreds of wagons for Railtrack will be signed by York-based Thrall Europa this week.

The deal will create dozens of jobs and will help secure the future of the freight manufacturer in the city.

It is understood that the complete order will be built exclusively at Thrall's Holgate Road site.

Company representatives today said they are unable to comment until the contract is signed, which is expected to take place on Thursday.

But it is known that the success has been announced to workers.

And the city's developers today celebrated the news.

Tony Bennett, assistant director of economic development at City of York Council, said: "If this news is confirmed, it will be very welcome indeed, both for the workforce at Holgate Park and for the local rail industry."

And Paul Murphy, the chief executive of the York Inward Investment Board, said: "The news will help me to continue to market York as a centre of world-class railway engineering, and to demonstrate to US companies in particular that this is an excellent base from which to grow their businesses."

Thrall and Railtrack are known to have been in discussion for many months about the contract to build several hundred trucks, which will assist with railway renewal work.

But Michael Robinson, director of marketing at Thrall Europa, said: "We are unable to comment at this time."

The wagons will be used by Railtrack to carry out its huge national infrastructure programme, taking ballast to track repairs.

Thrall Europa has already delivered more than 1,400 wagons to English Welsh and Scottish (EWS) as part of a five-year, 2,500 vehicle deal worth about £150 million. They were all produced at the Holgate Road site, home to the former ABB Carriageworks.

Finalising the Railtrack deal would be a massive vote of confidence in York's railway industry.

Updated: 10:59 Tuesday, January 23, 2001