Dive Brief:
- Siemens’ transport business Siemens Mobility will invest $220 million in a passenger rail manufacturing site in Lexington, North Carolina.
- The facility will include robotic welding, 3D printing and virtual reality welder training, and is expected to be carbon-neutral when at full capacity, according to a release.
- The project is expected to create more than 500 new jobs by 2028, with production expected to begin next year, according to a release.
Dive Insight:
Siemens has invested $3 billion to expand its manufacturing capacity over the past four years, including $400 million to grow its production footprint and over $2.5 billion in M&A activities.
"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," Siemens AG CEO Roland Busch said in a statement.
The plant adds to Siemens Mobility’s existing rail manufacturing capacity at its Sacramento, California headquarters, and will be its ninth facility nationwide. The Lexington and Sacramento sites will act as sister locations to build train vehicles compliant with the Biden administration's "Buy America" initiative.
North Carolina’s Department of Commerce provided the project with provided the project with a 12-year, Job Development Investment Grant. The cash grant includes reimbursements of up to $5,636,700, based on meeting job creation and investment targets, according to a state release.
North Carolina is one of several states, alongside others in the southeast such as Tennessee and South Carolina, that have seen a rise in manufacturing investment in recent months since the passage of legislation including the Bipartisan Infrastructure Law and the Inflation Reduction Act.
The Bipartisan Infrastructure Law included significant financial support for the rail industry, including $102 billion in total rail funding.
"Siemens' announcement to expand their manufacturing to Lexington is a big win for the region," North Carolina Sen. Thom Tillis said in a statement. “I applaud Siemens for their investment in our great state and the critical role they play in improving our country’s transportation and infrastructure. I’m proud that the Bipartisan Infrastructure Law I helped write and pass into law provided the federal funding for this important project.”
