Siemens Mobility Launches New Rail Manufacturing Hub in North Carolina
The bustling city of Lexington, North Carolina, has become the latest focal point for advanced manufacturing, as Siemens Mobility Inc. opened its new passenger rail manufacturing center. The establishment of this facility marks a significant economic development, projected to create 506 jobs in Davidson County and boost the state’s economy by nearly $1.6 billion over the next decade.
Governor Josh Stein, present at the ribbon-cutting ceremony, emphasized North Carolina’s ongoing commitment to innovation and manufacturing. “North Carolina is a hub for innovation and a leader in advanced manufacturing and the clean tech economy,” said Governor Josh Stein. He added that Siemens Mobility’s investment is pivotal for the state’s economic growth and its role in shaping the future of passenger rail in the nation.
Lee Lilley, Secretary of the North Carolina Department of Commerce, echoed this sentiment, highlighting the state’s favorable conditions for manufacturing growth, including a skilled workforce and robust infrastructure. “Siemens Mobility’s new facility in Davidson County reflects the kind of advanced manufacturing investment that continues to take root and grow across North Carolina,” said Lee Lilley.
The strategic investment by Siemens Mobility is partly driven by the success of NC By Train, North Carolina’s intercity rail service, which has seen record ridership for four consecutive years. Transportation Secretary Johnson emphasized the importance of such partnerships in meeting increasing transportation demands.
Siemens Mobility North America’s CEO, Tobias Bauer, expressed gratitude for the collaboration with state and local entities in bringing the facility to life. “We are proud to celebrate the opening of our new Lexington facility and grateful for the strong partnership with the State of North Carolina and the local community in making this milestone possible,” said Tobias Bauer. This $220 million investment is set to enhance domestic supply chains and facilitate the production of modern, reliable passenger rail solutions across the country.
North Carolina boasts the largest manufacturing workforce in the Southeast, with nearly 500,000 employees in the industry. The state continues to attract significant investments, such as the recent announcement by TSEA Energy, a Brazilian company, to establish its first U.S. plant in Eden, creating 160 jobs.
Further supporting workforce development, the Siemens Foundation has launched Careers Electric™, a $9.25 million initiative to expand electrical training in North Carolina, aiming to equip 25,000 residents for careers in the energy and infrastructure sectors over the next decade.
The Siemens Mobility project benefits from a Job Development Investment Grant (JDIG) approved in 2023 by North Carolina’s Economic Investment Committee. Over 12 years, this grant is expected to contribute $1.6 billion to the state economy, with Siemens authorized for potential reimbursement of up to $5,636,700, contingent on meeting job creation and investment criteria.
Key partners in this venture include the North Carolina Department of Commerce, the Economic Development Partnership of North Carolina, and various local and state organizations, highlighting the collaborative effort to foster economic growth and innovation in the region.
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