German transport solution company Siemens Mobility has begun construction of its $220m train factory in Lexington, North Carolina.

The new plant, which is set to provide more than 500 new jobs, will rank among the biggest employers in the area. It is set to manufacture passenger coaches as well as what Siemens said would be the first-ever site to combine overhauls for passenger cars and locomotives under one roof.

Factory operations are set to commence in 2024 when Siemens said it will use the same technology used in its Sacramento factory, including robotic welding, 3D printing, and virtual reality welder training.

The 200-acre site will allow for future growth, the US market-leading rolling stock manufacturer explained.

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By GlobalData

“Our new east coast hometown will soon be a powerhouse when it comes to rail manufacturing,” said Michael Cahill, president of rolling stock, Siemens Mobility North America.

“Complementing our operations in Sacramento, our bi-coastal facilities will work together to manufacture the latest rail technology and transform the every day for communities across the country,” he added.

The plant is planned to be carbon neutral when fully operating, which will significantly contribute to our environmental efforts. 

Marc Buncher, CEO of Siemens Mobility North America said: “This is not just an investment in rail, but an investment in manufacturing, jobs, sustainability, digitalization and the future of modern transportation.”

Lexington is located in the Piedmont Triad: “a commerce hub with easy access to transportation and a strong workforce in central North Carolina.”

Siemens Mobility will receive a Job Development Investment Grant from the state government of North Carolina, which is estimated to return $1.6bn to the state economy over the next 12 years.

Buncher was joined at the groundbreaking ceremony by members of North Carolina’s Congressional delegation.

“I am happy to welcome Siemens Mobility to the Old North State. Their choice of Lexington as the home for their latest manufacturing and rail services facility is great news for Davidson County, and is going to mean hundreds of new jobs and an estimated economic boost of up to $1.6 billion over the next decade,” said United States Senator Ted Budd.