Siemens Mobility to invest $220 million into North Carolina rail manufacturing facility

March 07, 2023 at 11:52 AM EST

More than 500 jobs created by 2028
Production to start in 2024
Estimated to grow the state’s economy by $1.6 billion over 12 years

Siemens Mobility, the Unites States’ largest passenger rolling stock manufacturer, will expand its manufacturing footprint by building a $220 million advanced manufacturing and rail services facility in Lexington, NC. The facility will create more than 500 new jobs and be one of the city’s largest employers. With the increased production capacity, Siemens Mobility will fulfill the growing demand for passenger rail in America by producing some of the most innovative and sustainable passenger trains in the North American market. Because of the Biden Administration, North Carolina’s Congressional Delegation, and other congressional stakeholders, the Bipartisan Infrastructure Law is enabling American rail and transit operators to make critically needed investments in infrastructure that will position the country to meet the needs of its citizens with rail networks designed for future generations.

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“America’s investing in rail – and we are investing in America,” said Dr. Roland Busch, CEO of Siemens AG. “Siemens has invested $3 billion in manufacturing expansions and M&A activities in the U.S. over the past four years alone, including nearly $400 million to grow its U.S. manufacturing footprint and over two and half billion dollars in strategic U.S. acquisitions. 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.”

“After four decades of manufacturing trains in America and on behalf of all 4,000 Siemens Mobility employees in the U.S., we are excited to announce that we will expand to our new east coast hometown in Lexington, North Carolina,“ said Marc Buncher, CEO of Siemens Mobility North America. “Thanks to the adminstrations vision and strong ambition to put rail on the national agenda and the funding available to our customers in the Bipartisan Infrastructure Law, now is the moment in time for rail in America. This facility supports our strategy to grow in close proximity to our customers as well as provide us with the added capacity needed to push the boundaries of innovation.“

"Leading global companies like Siemens Mobility continue to choose North Carolina to build the next generation in innovative clean transportation,” said Governor Roy Cooper. “Thanks to our state’s skilled workforce, and the proven education and training systems that help people maintain and build those skills, North Carolina is the number one state for manufacturing.”

Siemens has been a national asset moving America forward for more than 160 years, investing $40 billion in the United States over the past two decades while serving the industries and infrastructure forming the backbone of the American economy. The company’s 45,000 employees across the U.S. and 21 manufacturing sites are developing and deploying technologies for more than 100 cities and 90 percent of Fortune 500 industrial companies.

“Siemens Mobility’s announcement catapults the growth Lexington and Davidson County have recently been experiencing. The investment and jobs that this project brings to the area will improve the quality of life for countless in our community. We are so excited to see how this will transform the entire region over the next several decade,” said Jason Hayes, Mayor of City of Lexington.

"Thanks to President Biden's Bipartisan Infrastructure Law, rail is positioned as a central player in our transportation and economic future, and we are positioned to advance the world-class passenger rail Americans deserve," said FRA Administrator Amit Bose. "Today's investments in American manufacturing by Siemens, in a State that has been a leader in rail innovation and safety for decades, will further modernize passenger rail with quality and convenience to riders across the country."

“President Biden committed to investing in America and rebuilding our economy from the bottom up and middle out – and it’s working,” said Senior Advisor to the President and White House Infrastructure Implementation Coordinator Mitch Landrieu. “Today’s announcement from Siemens is further proof that when the public and private sector work together, we can build a better America – powered by world-class, sustainable transit and rail that makes it easier for families to see their loved ones, domestic manufacturing that strengthens our global competitiveness, and good-paying jobs for all.”

The passenger coach manufacturing factory, as well as first-of-its-kind locomotive and passenger coach overhauls facility will be on a 200-acre site allowing for future facility expansion. When it starts operations in 2024, it will incorporate some of the latest technologies found in our Sacramento facility including robotic welding, 3D printing, and Virtual Reality welder training. In addition, when fully operational the facility will be carbon neutral, playing an important role in our sustainability commitments.

Lexington is in Davidson County and home to nearly 20,000. It is located in the Piedmont Triad: a commerce hub with easy access to transportation and a strong workforce in central North Carolina. Siemens Mobility will be receiving a Job Development Investment Grant from the state of North Carolina. Over the course of the 12-year term of this grant, the facility is estimated to grow the state’s economy by $1.6 billion.

From the first light rail vehicle to delivered to San Diego in 1984 to the 30,000 rail crossings across America, Siemens Mobility has contributed to the power of connection, jobs and investment to our American cities with eight manufacturing facilities, 4,000 employees and more than 2,000 suppliers across the United States. Siemens Mobility has been manufacturing in America for more than 40 years and Lexington, NC will be its ninth manufacturing site, with other facilities located in Alpharetta, Georgia; Louisville, Kentucky; Marion, Kentucky; Pittsburgh, Pennsylvania; New Castle, Delaware; Tualatin, Oregon and two facilities in Sacramento, California.

Lexington’s sister site will be the 60-acre, up to 80% solar-powered, rolling stock facility in Sacramento, which has been manufacturing vehicles for more than 30 years and has delivered more than 3,000 locomotives, passenger coaches and Light Rail Vehicles. The Buy America compliant vehicles are built by the 2,500 employees in Sacramento, with the support of American suppliers across 40 states. More than 40 transit agencies across the U.S. and Canada benefit from Siemens Mobility’s portfolio of light rail vehicles, locomotives, passenger coaches, components and automation systems, moving millions of passengers every year.

Federal, state and local stakeholders recognize the significance of Siemens Mobility’s announcement:

“Siemens' announcement to expand their manufacturing to Lexington is a big win for the region and will create more than 500 jobs,” said U.S. Senator Thom Tillis. “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.”

“Today’s announcement that Siemens Mobility has picked Lexington as the home for their latest manufacturing and rail services facility is great news for Davidson County. This new facility is going to mean hundreds of new job opportunities for North Carolinians and is estimated to grow our state’s economy by up to $1.6 billion over the next decade. I am happy to welcome Siemens Mobility to the Old North State,” said U.S. Senator Ted Budd.

“This announcement is exciting news for the City of Lexington, the Piedmont Triad region, and all of North Carolina,” said Congresswoman Valerie Foushee (NC-04), Vice Ranking Member of the Transportation and Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials. “The new Siemens Mobility manufacturing and rail services facility will bring hundreds of good paying jobs to North Carolina, while working to meet the increased demands for high-speed passenger rail and modernizing our nation’s rail infrastructure.”

For further information about Siemens Mobility in the United States, please see: https://www.mobility.siemens.com/us/en/company/locations/investing-in-the-future-of-rail-in-lexington-north-carolina.html

Siemens Mobility is a separately managed company of Siemens AG. As a leader in transport solutions for more than 175 years, Siemens Mobility is constantly innovating its portfolio. Its core areas include rolling stock, rail automation and electrification, a comprehensive software portfolio, turnkey systems as well as related services. With digital products and solutions, Siemens Mobility is enabling mobility operators worldwide to make infrastructure intelligent, increase value sustainably over the entire lifecycle, enhance passenger experience and guarantee availability. In fiscal year 2022, which ended on September 30, 2022, Siemens Mobility posted revenue of €9.7 billion and had around 38,200 employees worldwide. Further information is available at: www.siemens.com/mobility.

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Contacts

For journalists

Kara Evanko

Phone: +1 412 951-6933; E-Mail: kara.evanko@siemens.com