Industrial giant Siemens has revealed plans for a giant 67 acre site in Goole, East Yorkshire, which will manufacture and commission trains primarily for the domestic market.
The firm has signed a long term agreement for the lease of the land involved and construction work could begin as early as this year subject to order requirements.
Its chief executive Juergen Maier said the investment had “the potential to have a tremendous impact on the Yorkshire economy and the North of England as a whole”.
The new factory is set to employ up to 700 people in skilled engineering and manufacturing roles, plus an additional 250 people during the construction phase.
Those behind the scheme estimate around 1,700 indirect jobs would be created throughout the UK supply chain.
The investment is the second large-scale investment which Siemens has made in East Yorkshire, having created a wind turbine factory in Hull.
Mr Maier said: “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 would need to build and operate the factory.
“This investment has the potential to have a tremendous impact on the Yorkshire economy and the North of England as a whole, ensuring that the benefits of infrastructure spending are spread widely and helping to ensure the ongoing development of the UK rail industry.”
The factory will be based at the Goole 36 development adjacent to junction 36 of the M62 and include manufacturing and commissioning buildings, warehouses, offices, and stabling sidings with potential for the development of a test track.
The news was welcomed by political and transport leaders.
Goole and Brigg MP, Andrew Percy, said: “This has the potential to be transformative for our area and for local young people.
“It also builds on Siemens’ other recent investment in East Yorkshire with their wind turbine facility in Hull.”
John Cridland, chairman of Transport for the North, said the factory will have the potential to compete to provide the trains required to help fulfil Transport for the North’s Strategic Transport plan while transport secretary Chris Grayling called the development “an exciting proposal”.
Siemens employs 4,400 in rail and wider transport-related roles in the UK and the new facility will complement Siemens’ existing eight purpose-built maintenance facilities.