The Los Angeles County Metropolitan Transportation Authority in the US has agreed to award a $300m contract to Italian firm AnsaldoBreda to build 100 additional rail cars.
The new order is based on an option in the earlier deal to supply 50 light rail vehicles.
This comes in spite of opposition from within the transport agency citing the Italian firm's under-performance in a earlier contract, in which locomotives were delivered late and were too heavy to be used on all light rail routes.
AnsaldoBreda offered a $75m irrevocable letter of credit in addition to s $300m performance bond while bidding for the contract.
The deal also requires the Italian firm, a Finmeccanica subsidiary, to build a manufacturing facility in the city.