Siemens Mobility, Inc., the global manufacturer of rail transportation vehicles and control systems, will build a major advanced manufacturing and rail services center in Davidson County, creating 506 jobs, Governor Roy Cooper announced on March 7.
The company will invest $220 million in Lexington, creating a new carbon neutral facility that will serve the company’s East Coast markets.
Governor Cooper led an event to announce the project in Lexington earlier today, joined by:
- Dr. Roland Busch, President and CEO, Siemens AG
- Amit Bose, U.S. Federal Railroad Administration Administrator
- Barbara Humpton, President and CEO, Siemens USA
- Marc Buncher, President and CEO, Siemens Mobility North America
- Mitch Landrieu, White House Senior Advisor and Infrastructure Coordinator
- Eric Boyette, Secretary, N.C. Department of Transportation
- Fred McClure, Chairman, Davidson County Commissioners
- Jason Hayer, Mayor, City of Lexington
“Leading global companies like Siemens Mobility continue to choose North Carolina to build the next generation in innovative clean transportation,” said Governor 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 Mobility, a separately managed company of Germany’s Siemens AG, has been a leader in intelligent transportation solutions for more than 175 years. The company’s core areas of focus include rolling stock, rail automation and electrification, and a comprehensive software portfolio among other offerings.
Siemens Mobility’s advanced manufacturing center in North Carolina will involve multiple buildings on the 200 acre site, which will also feature more than 11,000 feet of rail track. The company will manufacture passenger rail vehicles at the Lexington facility, allowing it to better serve its East Coast customers while meeting growing demand for its products.
“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. “Now is the moment in time for rail in America and 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.”
“North Carolina’s manufacturing workforce has earned its global reputation for excellence,” said North Carolina Commerce Secretary Machelle Baker Sanders. “I lead a department that puts people and talent development front and center, and we’ll continue to invest in the workforce development and training programs that have earned us the respect of CEOs around the world.”
Although wages will vary depending on the position, the average salary for the new positions will be $51,568. The current average wage in Davidson County is $49,956.
Siemens Mobility’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.6 billion.
Using a formula that takes into account the new tax revenues generated by the new jobs, as well as a capital investment of $220.2 million, the JDIG agreement authorizes the potential reimbursement to the company of up to $5,636,700, spread over 12 years.
Because Siemens Mobility chose a site in Davidson County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $626,300 into the state’s Industrial Development Fund – Utility Account.
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina on this project were the North Carolina General Assembly, the North Carolina Community College System, the N.C. Department of Transportation, the North Carolina Ports, the North Carolina Railroad Company, Norfolk Southern, ElectriCities of North Carolina, the City of Lexington, Davidson-Davie Community College, Davidson County Airport Authority, Davidson County, and the Davidson County Economic Development Commission.