Siemens Is Boosting U.S. Passenger Train Production With A $220 Million North Carolina Plant

Siemens, which says it’s already the biggest maker of passenger trains in the U.S., is building a $220 million factory in North Carolina to produce coaches. The company is, anticipating higher demand for commuter and inter-city rail and says the new facility will make it easier to serve East Coast customers.

The factory, the second geared toward American railways for the Munich, Germany-based manufacturer, will be in Lexington, North Carolina, on a 200-acre site and should open in 2024, Marc Buncher, CEO of Siemens’ North American Mobility unit, told reporters on Tuesday. It will employ 500 people in its first phase and initially produce 100 Venture cars annually. Siemens already makes both locomotives and passenger cars for Amtrak, U.S. and Canadian commuter lines and Brightline’s Florida passenger railway at its Sacramento, California, plant.

“This is not the limit; we are targeting for more because we know that America is transforming its transportation systems into a greener, more sustainable one,” Siemens CEO Roland Busch said in a conference call. “We do believe that these kinds of projects, more rollingstock capacity, will make an impact.”

The move comes as the Biden Administration pushes for improved U.S. rail service, securing billions of dollars to upgrade Amtrak and grants for commuter systems as part of the Bipartisan Infrastructure Law. That legislation also includes funds to aid high-speed rail projects planned by private companies such as Brightline, which intends to build a bullet train between Las Vegas and suburban Los Angeles.

“Demand for those rail cars is increasing and Siemens is going to use this new plant to service customers up and down the East Coast,” said North Carolina Governor Roy Cooper, who said the factory will generate $1.6 billion for the state over the next decade. “I’m sure North Carolina will want to buy some, too as our passenger rail numbers are way up.”