There was uncertainty after rival firms launched a legal challenge in July over the awarding of the contract to Siemens Mobility Ltd to build almost 100 trains by London Underground to replace its ageing fleet.
A suspension on the contract was lifted by a High Court ruling earlier this month, meaning the new factory in Goole and 700 jobs is back on track.
Some 250 jobs will be created during construction, and the factory is expected to generate another 1,700 jobs in the supply chain.
Mayor Richard Walker said it would be a “great relief to Goole people who want them to just get on with it.”
He added: “It is fantastic to get confirmation first hand from Finbarr Dowling (from Siemens) It is all systems go and they expect to have spades in the ground by 2020.”
Brigg and Goole MP Andrew Percy said it was “probably the biggest single investment” since the Aire and Calder Navigation Company founded the town in the 1820s and pointed to the “tranformative effect” Siemens’ wind turbine blade factory has had in Hull.
He said: “It is great news. It has the potential to change the town significantly - these will be high-skilled jobs right on the doorstep.”
Mr Percy said the new trains, destined for the Piccadilly Line, were just “part of the story” with HS2 and other upgrades, also providing “lots of work.”
Coun Steve Parnaby, leader of East Riding Council, added:“We’re delighted Siemens has secured this key strategic site and has such exciting plans for its development.
“We’re committed to supporting Siemens’ ambitions to establish a major manufacturing facility for the UK rail industry in Goole, which would deliver significant economic benefits to the East Riding of Yorkshire, the wider region and the country as a whole.”
Siemens said a “proportion” of the 94 Piccadilly Line trains will be built on the Goole 36 development, with some being built at its factory in Vienna.
It said the contract, which includes a fleet services agreement covering the supply of spares and technical support, was “awarded with the expectation that Siemens Mobility will build trains for all four Deep Tube lines – the Piccadilly, Bakerloo, Central and Waterloo & City.”
Nigel Holness, Managing Director of London Underground, said: “This order will mean the replacement of the 1970s Piccadilly line fleet, with delivery of the new trains in 2023, and will help address crowding on the line as London’s population continues to rise.”