Siemens UK’s chief has hailed the £200m investment in a new train manufacturing plant in Goole as a “tremendous vote of confidence” in the British economy.
The Munich-headquartered company is collaborating with Transport for London (TfL) to produce essential new trains, which will rejuvenate the ageing Piccadilly Line fleet, as reported by City AM.
The facility in East Yorkshire is set to generate 700 jobs and will provide rolling stock to several major UK train operators, including TfL.
Additionally, Siemens Mobility revealed on Thursday its plans for an extra £40m investment in a Bogie assembly and Service Centre, expected to create up to 200 additional jobs.
In comments made to City AM during the inauguration event, Sambit Banerjee, joint chief executive, expressed that the investment signifies a “significant statement of confidence towards the UK market and the UK economy as well.”
Originally, it was envisaged that production of the new Piccadilly Line trains, scheduled to enter service in 2025, would be equally shared with Siemens’ Vienna facility. However, the company now aims to manufacture 80% of the rolling stock in Goole.
(Image: Siemens Mobility)
Past criticisms have targeted Siemens for securing UK contracts but producing the trains overseas.
Yet, Mr Banerjee emphasised the “confidence Siemens Global Board is showing, saying ‘hey look, from now on whatever new contracts we win, we will manufacturer all our trains from Goole’,” Mr Banerjee remarked.
Siemens holds a hefty £1.5 billion contract with Transport for London (TfL) to supply the new Piccadilly Line trains, and this agreement opens the door for the company to potentially furnish trains for the Bakerloo, Central and Waterloo & City lines as well.
Both the Bakerloo and Central Lines have been plagued with delays and disruptions throughout the year, largely due to their ageing rolling stock. Campaigners sounded the alarm in February, cautioning that without government funding for upgrades, these lines could be on the brink of a ‘critical failure’.
“We are working very, very closely with TfL and the Department for Transport (DfT) to ensure that the Bakerloo Line options are exercised,” stated Bannerjee in discussions with City A. M.
Debate has emerged over whether the Bakerloo or Central Lines ought to have their rolling stock replaced first. Nevertheless, according to Bannerjee, opting for a “quick replacement” of the Piccadilly Line trains was the “decision was right”, partly justified by the high passenger seating occupancy rates.
The incoming Piccadilly Line fleet will feature modern air conditioning and will abandon the traditional single-carriage model in favour of a continuous nine-carriage design. This not only augments capacity but also promises a lighter construction that is expected to cut down on carbon emissions significantly.
At the official launch event in Goole on Thursday, Transport Secretary Louise Haigh and Mayor of London Sadiq Khan were present, joined by leading TfL figures.
Ms Haigh said: “This impressive, world-class facility will be transformational to Goole and its people, providing a boost to the region’s economy and supporting hundreds of skilled jobs,”.
“Its opening demonstrates the importance of high quality, long-term investment to pave the way for employment and growth.”
Mr Khan commented: “This train manufacturing facility in Goole is a fantastic example of the expertise we don’t have and how investment in London benefits the whole country.”
He further added, “This factory, where the new state-of-the-art Piccadilly line trains will be built, will create up to 900 direct jobs and support another 1,700 in the supply chain, delivering great benefits to the wider UK economy, showing that where London succeeds, the whole country succeeds and vice versa.”
Like this story? Why not sign up to get the latest business news straight to your inbox.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
