Siemens plans to build a train factory at Goole.

The facility in the East Riding of Yorkshire could cost up to £200 million. Development is planned to start later this year on the 67-acre site if investment conditions are met, and subject to success in future orders.

Up to 700 jobs could be created, along with a further 250 jobs during construction. Siemens said around 1,700 indirect jobs would be created through the UK supply chain.

Juergen Maier, Siemens UK Chief Executive: “We’ve said for some time that future success for Siemens in the rail industry would see us opening a rail manufacturing plant here and this announcement provides additional substance to those words. Having considered multiple locations in the UK, I’m delighted to confirm that we’ve identified a site in Goole for our new UK rail factory which not only has the potential scale we need for a facility of this size but also ready access to the skilled people we’d need to build and operate the factory.

Secretary of State for Transport Chris Grayling said: “This exciting proposal by Siemens underlines the benefits of this government’s £13 billion investment into improving and modernising Northern transport, providing major firms with the fast, reliable connections required to recruit a skilled workforce and deliver cutting-edge innovation.

Gordon Wakeford, Siemens UK Managing Director of the Mobility Division said: “We have been a major part of the UK rail industry for over 20 years and have already invested hundreds of millions in our facilities, our people and technology over the past five years alone. This proposed major new investment cements our company’s desire to further its presence in the UK’s rail market and underpins the ongoing importance of the market here to our rail business globally. We are looking forward to working with our UK industry partners and supply chain to bring this vision for the future to reality.”

The factory will be located at the Goole 36 development, next to Junction 36 on the M62. Plans include manufacturing and commissioning buildings, warehouses, offices, stabling sidings and the potential to develop a test track.

MP for Goole & Brigg Andrew Percy said: “This has the potential to be transformative for our area and for local young people. It also builds on Siemens’ other recent investment in East Yorkshire with their wind turbine facility in Hull.”