Danish Railway Settles With AnsaldoBreda

COPENHAGEN (AP) -- The Danish national railway system, DSB, says it has reached a 2.25 billion kroner ($411 million) settlement with train maker AnsaldoBreda after the Italian company failed to deliver trains on time.

DSB chief Soeren Eriksen says the Italian group only has delivered 14 of 83 diesel-powered trains ordered in 2000. The trains should have been delivered in 2006.

In addition, Eriksen says the delivered trains have software and exhaust pipe problems, stained carpets and damaged packing and seals. He says the delays and problems are "chiefly due to AnsaldoBreda's bad performance."

Under the settlement presented Wednesday, AnsaldoBreda will pay 2.25 billion kroner in compensation to DSB and deliver the remaining trains in the fall of 2012.

There was no immediate reaction from AnsaldoBreda.

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