Siemens Mobility to invest $220 million into North Carolina rail manufacturing facility

Credit: Siemens Mobility

Siemens Mobility will expand its manufacturing footprint by building a $220 million advanced manufacturing and rail services facility in Lexington, North Carolina. The facility will create more than 500 new jobs and be one of the city’s largest employers. With the increased production capacity, Siemens Mobility will fulfil the growing demand for passenger rail in America by producing some of the most innovative and sustainable passenger trains in the North American market.

“America’s investing in rail – and we are investing in America,” Dr. Roland Busch, CEO of Siemens AG, said. “Siemens has invested $3 billion in manufacturing expansions and M&A activities in the U.S. over the past four years alone, including nearly $400 million to grow its U.S. manufacturing footprint and over two and half billion dollars in strategic U.S. acquisitions. This latest facility will build rail technology to help transform the everyday for millions of passengers around the country, particularly as the country sees a resurgence in public transit and intercity travel.”

“For more than 30 years, we’ve seen the US market continue to grow as we have manufactured over 3,000 locomotives, passenger coaches and Light Rail Vehicles in the USA in partnership with our 2000 American suppliers, including more than 40 in North Carolina,” Michael Peter, CEO at Siemens Mobility, said. “We are delighted to be in Lexington, which will work side-by-side with our long-established Sacramento factory in serving the increasing needs of the US rail industry from coast-to-coast.”

Credit: Siemens Mobility

The passenger coach manufacturing factory, as well as first-of-its-kind locomotive and passenger coach overhauls facility will be on a 200-acre site allowing for future facility expansion. When it starts operations in 2024, it will incorporate on some of the latest technologies found in the Sacramento facility including robotic welding, 3D printing, and Virtual Reality welder training. In addition, when fully operational the facility will be carbon neutral, playing an important role for sustainability commitments.

“Leading global companies like Siemens Mobility continue to choose North Carolina to build the next generation in innovative clean transportation,” Roy Cooper, Governor of North Carolina, said. “Thanks to our state’s skilled workforce, and the proven education and training systems that help people maintain and build those skills, North Carolina is the number one state for manufacturing.” 

“President Biden committed to investing in America and rebuilding our economy from the bottom up and middle out – and it’s working,” Mitch Landrieu, Senior Advisor to the President and White House Infrastructure Implementation Coordinator, said. “This announcement from Siemens is further proof that when the public and private sector work together, we can build a better America – powered by world-class, sustainable transit and rail that makes it easier for families to see their loved ones, domestic manufacturing that strengthens our global competitiveness, and good-paying jobs for all.”

“Siemens Mobility’s announcement catapults the growth Lexington and Davidson County have recently been experiencing,” Jason Hayes, Mayor of City of Lexington, said. “The investment and jobs that this project brings to the area will improve the quality of life for countless in our community. We are so excited to see how this will transform the entire region over the next several decade.”

Lexington is in Davidson County and home to nearly 20,000. It 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 be receiving a Job Development Investment Grant from the state of North Carolina. Over the course of the 12-year term of this grant, the facility is estimated to grow the state’s economy by $1.6 billion.

Lexington’s sister site will be the 60-acre, solar-powered, rolling stock facility in Sacramento, which has been manufacturing vehicles for more than 30 years and has delivered more than 3,000 locomotives, passenger coaches and Light Rail Vehicles. The Buy America compliant vehicles are built by the 2,500 employees in Sacramento, with the support American suppliers across 40 states. More than 40 transit agencies across the U.S. and Canada benefit from Siemens Mobility’s portfolio of light rail vehicles, locomotives, passenger coaches, components and automation systems, moving millions of passengers every year.