Workers at Derbyshire firm Bombardier were celebrating yesterday after Department for Transport bean-counters caved in and awarded them a £1 billion contract to supply rolling stock for London's Crossrail development.

The order, which secures over 1,000 jobs, was won after a determined campaign which united unions, MPs and the local community in support of Britain's only remaining train manufacturer.

It involves the supply, delivery and maintenance of 65 trains for Transport for London.

Transport union RMT general secretary Bob Crow said: "This is a fantastic and deserved result, coming after a long-running campaign led by RMT and the local community in Derby in the wake of the Thameslink fleet shambles, which will go a long way to saving the future of train building in the nation that gave the railways to the world."

The coalition's disastrous handling of the £1.4bnThameslink contract in 2011, which it awarded to German firm Siemens, cost 1,000 jobs at Bombardier and jeopardised the entire future of Britain's train manufacturing sector.

The deal was followed by two years of wrangling over the way it had been struck.

Train drivers' union Aslef general secretary Mick Whelan also welcomed the investment. He said: "It's good news for workers in Derby - the result of union pressure and a strong local campaign - which should help to secure the supply chain and, with future apprenticeships, provide work for people here for generations to come."

But Mr Whelan added that the case underlined a need for Britain's rail industry to be taken back into public ownership, rather than continue to force taxpayers to underwrite the profits of multinational privateers.

"We are mindful that Bombardier lost out to Siemens of Germany in the recent deal to design, build, finance and maintain a fleet of 1,140 carriages for the Thameslink route," he said

"And it's wrong for the rolling stock companies to be taking money out of the country from what is, after all, a taxpayer-funded initiative.

"It's another reminder that while the privatised train operating companies make the profits, it is the taxpayer who is funding all the investment in our railways. That's why we are calling for a public-owned and properly integrated railway system in Britain."

Unite welcomed the decision as "a tribute to the skills and dedication of the Derbyshire workforce."

National officer Julia Long said: "After the disastrous handling of the Thameslink contract this news must come as a massive relief for the skilled men and women at Bombardier.

"Bombardier will continue to build trains, valuable jobs will be secured and young people will have a future in manufacturing through apprenticeships."

Crossrail is due to open in 2018.