Siemens to build rail car factory in Lexington
N.C. Gov. Roy Cooper (left) speaks at a press conference Tuesday afternoon about the new Siemens Mobility passenger rail car factory planned for Lexington as Roland Busch, president and CEO of Siemens AG, looks on. {Vikki Broughton Hodges/Davidson Local}
Siemens Mobility announced plans Tuesday afternoon, March 7, to invest $220 million to build a factory that will manufacture rail cars and eventually employ 500 people in the Lexington Industrial Park on Brown Street.
Dubbed Project Gemini in recent discussions on state and local incentives, the formal announcement comes after years of talks with public and private partners in the venture. Construction is set to begin in a few months and production is scheduled to start in 2024.
The North Carolina Economic Investment Committee recently approved an incentive package totaling roughly $16.8 million while incentives from Davidson County and the city of Lexington totaled about $16 million. Other partners in the project include Davidson-Davie Community College, the N.C. Railroad Co. and Front Street Capital, led by Robin Team of Lexington.
“We’re very, very grateful to the partner agencies that have made this possible,” said N.C. Gov. Roy Cooper, addressing a crowd in the Railroad Street building that currently houses the Lexington Farmers Market. “Today, in this historic freight depot, we’re here to talk about modern rail.”
Cooper noted Siemens Mobility builds passenger rail coaches for Amtrak, which plans to add a station in Lexington within a few years as Amtrak’s Piedmont Corridor expands its number of stops between Charlotte and Raleigh. Additionally, Siemens builds light rail and streetcars for cities in North America.
The governor reported the factory will have a $1.6 billion impact on the N.C. economy over the next 12 years as the company ramps up to supply passenger rail cars on the East Coast fueled by the Biden Administration’s bipartisan infrastructure bill.
Siemens Mobility, part of the larger German-based multinational Siemens AG corporation, has outgrown the capacity of its passenger-rail facility in Sacramento, Calif., which employs 2,500 people on a 65-acre tract.
Roland Busch, president and CEO of Siemens AG, said the new rail car manufacturing and rail services facility will make the most innovative and sustainable passenger rail cars in North America. He explained the facility will use robotics, 3-D printing and digital technology.
“We will showcase what ‘Made in America’ advanced manufacturing looks like in the future.” Busch added the rail cars will be powered by batteries and hydrogen.
Eric Boyette, secretary of the N.C. Department of Transportation, stated that ridership on Amtrak in North Carolina was up 22 percent this past year and is projected to keep growing with the state’s increasing population.
“We can reduce our carbon footprint and reduce congestion on our roads,” he offered.
Fred McClure, chairman of the Davidson County Board of Commissioners, noted 34,000 people travel out of the county for work daily but the new factory could greatly reduce that number. “Davidson County is ready for manufacturing jobs.”
Lexington Mayor Jason Hayes said the project could be transformative for the region. “The investment and jobs that this project brings to the area will improve the quality of life for countless in our community.”
Mark Buncher, president and CEO, Siemens Mobility North America, affirmed the company is proud to be part of the “rail renaissance” going on in the United States and is looking forward to calling Lexington “our new East Coast hometown.”
