The railcar subsidiary of Montreal-based Bombardier Inc., the modern expansion of former Vietnamese Lohner-Rotax Co., signed a large deal with Deutsche Bahn, said the company in a press release Monday.

Bombardier, up 5 per cent in intraday trading, is one of Canada’s largest corporations, headquartered in Montreal, Quebec, the company is well known for a number of transporation market related investments; from airlines to large scale railcars.

The agreement, in which Bombardier promises to provide the German railroad with 800 double-decker coaches, has a total volume of up to $1.5 billion Euros; roughly $2.1 billion U.S.

“In particular in these difficult economic times, we have decided to invest in the future. This decision is also intended to communicate an economic message. It will enable us to make outstanding transport bids in the regional transportation market and offer convincing quality. Economical and powerful transportation demands a modern fleet of energy-saving vehicles that can be used in flexible combination with one another,” says Deutsche Bahn CEO, Hartmut Mehdorn.

“The new generation of double-deck coaches is an outstanding example of our continuous product innovation here at Bombardier Transportation. It is now possible to combine double-deck coaches with multiple-unit technology. This is the largest framework agreement for vehicles that DB has ever awarded to a single supplier. We are very pleased by this trust,” says President of Bombardier Transportation, André Navarri, in the press release issued Monday.

Bombardier has a number of manufacturing services in Germany, allowing close and rapid production, and supporting the target of Germany as Bombardier’s primary international growth location.

Bombardier did $43 billion in sales of high-tech railcars and other railroad equipment in the 2004-2006 analysis period, and roughly $50 billion in the more recent period. Analysts expect growth in the current period to roughly $56 billion over a two year period.

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