Spanish train manufacturer Talgo has signed an agreement with Scottish Enterprise and Transport Scotland to establish its UK manufacturing base in Longannet, Fife, in Scotland.

This move is part of the Spanish company’s strategy to bolsters its foothold in the British rail market and develop a local supply chain.

The agreement outlines the specific commitments of each of the parties to ensure that the multimillion-pound factory is finished by the stipulated time according to the agreed specifications.

In October 2017, Talgo revealed plans to construct a new plant in the UK. In October 2018, it shortlisted six sites, including Port of Mostyn in Wales as the potential site for the base.

Talgo finalised Fife as the chosen site for the factory in November last year.

Talgo president Carlos de Palacio y Oriol said: “We are committed to Scotland in our bid process. Today’s milestone marks a new phase in an excellent relationship with team Scotland.

“Now let’s get on with securing orders that will bring more jobs and ‘true manufacturing’ of rolling stock back to Scotland.”

Scottish Enterprise executive director Paul Lewis said: “This Framework agreement is another significant milestone in our work with Talgo, to achieve its ambition of establishing a world-class high-value manufacturing facility at Longannet.

“Scottish Enterprise and our partners are incredibly excited by Talgo’s plans for Longannet, which would deliver 1,000 direct jobs and a host of supply chain opportunities for companies in Scotland.”

Talgo specialises in the design, manufacture and service of technologically differentiated, fast, lightweight trains.

Headquartered in Las Rozas, Talgo operates multiple production and maintenance facilities situated across Germany, the US, Russia, Kazakhstan and Saudi Arabia.