Siemens UK's £200m train factory a major boost for British economy, says CEO

Siemens Mobility's Goole site.
-Credit: (Image: Siemens Mobility)


The Siemens UK boss 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 that will replace the ageing fleet on the Piccadilly Line, as reported by City AM.

The factory 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 plans for an extra £40m investment in a Bogie assembly and Service Centre, expected to create up to 200 additional jobs.

In a conversation with City AM during the inauguration event, Sambit Bannerjee, 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 planned for the production of the new Piccadilly Line trains, scheduled to enter service in 2025, to be equally shared with Siemens' facility in Vienna. However, the company now aims to manufacture 80% of the rolling stock in Goole.

Assembly Manager Dom Rodd with an IM Car, at the opening of the £200 million Siemens' Rail Village in Goole
Assembly Manager Dom Rodd with an IM Car, at the opening of the £200 million Siemens' Rail Village in Goole -Credit:PA

Siemens has faced criticism previously for securing UK contracts but producing the trains overseas.

Yet, Bannerjee highlighted 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 stated.

Siemens boasts a £1.5bn contract with Transport for London (TfL) to supply the modern Piccadilly Line trains, with a provision that could potentially extend to crafting rolling stock for the Bakerloo, Central, and Waterloo & City lines.

Both the Bakerloo and Central Lines have been plagued by hold-ups and interruptions this year due to their aged trains. Campaigners issued a stern warning in February about a possible "critical failure" on the line unless the government steps in with funding for necessary upgrades.

"We are working very, very closely with TfL and the Department for Transport (DfT) to ensure that the Bakerloo Line options are exercised," remarked Bannerjee in a discussion with City AM.

While there's been speculation about whether the Bakerloo or Central Lines should get their rolling stock replaced first, Bannerjee defended the decision for a "quick replacement" of the Piccadilly Line fleet based on the density of daily occupancy.

The forthcoming Piccadilly Line fleets will feature air conditioning and are artistically designed without single carriages, instead comprising a total of nine carriages. More than just enhancing passenger comfort, these new trains promise a lighter build, envisaged to substantially cut down carbon emissions.

Transport Secretary Louise Haigh and Mayor of London Sadiq Khan, at the opening of the £200 million Siemens' Rail Village in Goole
Transport Secretary Louise Haigh and Mayor of London Sadiq Khan, at the opening of the £200 million Siemens' Rail Village in Goole -Credit:Danny Lawson/PA Wire

At the ribbon-cutting event in Goole on Thursday, present to mark the occasion were Transport Secretary Louise Haigh and Mayor of London Sadiq Khan, accompanied by top brass from TfL.

Haigh praised the new facility in Goole, stating: "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," and added, "Its opening demonstrates the importance of high quality, long-term investment to pave the way for employment and growth."

Meanwhile, Khan expressed his views in a statement, saying: "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 elaborated, "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."