Siemens UK chief has said investment in its new £200m train manufacturing facility in Goole represents a “tremendous vote of confidence” in the UK economy.
The Munich-based firm is working with Transport for London (TfL) to build vital new trains to replace the Picadilly Line’s ageing fleet.
The East Yorkshire factory is expected to create 700 jobs and supply rolling stock for a number of key UK train operators and TfL.
Siemens Mobility also announced plans on Thursday for a further £40m investment in a Bogie assembly and Service Centre, which will create up to 200 extra jobs.
Speaking to City A.M from the opening ceremony, joint chief executive Sambit Bannerjee said the investment was a “significant statement of confidence towards the UK market and the UK economy as well.”
It was initially planned that manufacturing of the new Picadilly Line trains, which will come into service in 2025, would be split 50-50 with Siemens’ facility in Vienna. However, the group now intends to make 80 per cent of the rolling stock from Goole.
Siemens has been criticised in the past for winning UK contracts, only to build trains at its facilities abroad.
But Bannerjee noted 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’,” Bannerjee said.
Siemens holds a £1.5bn contract with TfL for the Picadilly Line trains but under the deal, it could also potentially end up producing rolling stock for the Bakerloo, Central and Waterloo & City services.
Both the Bakerloo and Central Lines have grappled with delay and disruption this year as a result of their decades-old trains. Campaigners warned in February the line could face a “critical failure” if the government does not provide funding for an upgrade.
“We are working very, very closely with TfL and the Department for Transport (DfT) to ensure that the Bakerloo Line options are exercised,” Bannerjee told City A.M.
Some questions have been asked over whether the Bakerloo or Central Lines’ rolling stock should be replaced first. However, Bannerjee said that the “decision was right” for a “quick replacement” of the Picadilly Line trains, in part due to the high number of seats filled each day.
The new Picadilly Line trains will be air conditioned and will not have single carriages, instead being made up of nine carriages in total. They also will be of a lighter design, which should significantly reduce carbon emissions.
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Transport secretary Louise Haigh and London’s Mayor Sadiq Khan were both in attendance at the official opening in Goole on Thursday, alongside senior officials from TfL.
“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,” Haigh said.
“Its opening demonstrates the importance of high quality, long-term investment to pave the way for employment and growth.”
In a statement, Khan said: “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.
“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.”