The German manufacturer, Siemens, has signed a contract to lease land in Goole, East Yorkshire, in order to open a new UK factory.
The factory will be dedicated to train manufacturing and commissioning and may cost the firm up to £200mn (US$276mn) to develop.
Siemens aim to build the factory on the 67-acre site in stages, beginning during 2018.
The facility will require 250 employees during the construction phase, 700 engineers when operational, and it is anticipated to generate 1,700 indirect jobs through supply chain.
“We’ve said for some time that future success for Siemens in the rail industry would see us opening a rail manufacturing plant here and this announcement provides additional substance to those words,” said Juergen Maier, CEO of Siemens UK.
“Having considered multiple locations in the UK, I’m delighted to confirm that we’ve identified a site in Goole for our new UK rail factory which not only has the potential scale we need for a facility of this size but also ready access to the skilled people we’d need to build and operate the factory.”
“This exciting proposal by Siemens underlines the benefits of this government’s £13bn investment into improving and modernising Northern transport, providing major firms with the fast, reliable connections required to recruit a skilled workforce and deliver cutting-edge innovation,” noted the UK’s Transport Secretary, Chris Grayling.