Siemens has signed an agreement for lease of land in Goole, East Riding of Yorkshire, UK, where it plans to establish a modern factory to manufacture and commission trains.
The company intends to invest up to £200m ($275.98m) in this project.
Siemens plans to start phased development of the 67-acre site later in 2018, subject to meeting investment conditions and securing major future orders.
The new factory is expected to employ up to 700 people in skilled engineering and manufacturing roles, in addition to 250 people during the construction phase.
Nearly 1,700 indirect jobs are likely to be created throughout the UK supply chain.
The plans for the factory, which will be located at the 271,000m2 Goole 36 site adjacent to junction 36 of the M62 motorway, highlight an extensive footprint covering 75,000m2, including manufacturing and commissioning buildings, warehouses, offices, and stabling sidings.
The plans also include the development of a test track of up to 12km.
Siemens UK CEO Juergen Maier said: “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.
“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.”
Transport Secretary Chris Grayling said: “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.
“From delivering brand new and refurbished trains through the Great North Rail Project, our plans to upgrade the Transpennine Route to our investment in Yorkshire’s roads, we are driving forward job creation, economic growth and unlocking the potential of the Northern Powerhouse.”