Siemens Mobility Selects North Carolina For Manufacturing Center

Siemens Mobility, Inc. plans to build a major advanced manufacturing and rail services center in Davidson County, North Carolina.

Siemens Mobility, Inc. will invest $220 million to build a major advanced manufacturing and rail services center in Davidson County, NC, creating 506 jobs. The company is also creating a new carbon-neutral facility in Lexington that will serve the company’s East Coast markets.

“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.”

Siemens Mobility North Carolina
Photo By Siemens

From the first light rail vehicle delivered to San Diego in 1984 to the 30,000 rail crossings across America, Siemens Mobility has contributed to the power of connection, jobs, and investment in the company’s American cities with nine manufacturing facilities (including Lexington), 4,000 employees, and more than 2,000 suppliers across the U.S. 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. In its 2022 fiscal year ending last September, Siemens Mobility reported more than 38,000 employees worldwide.

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.

“Leading global companies like Siemens Mobility continue to choose North Carolina to build the next generation in innovative clean transportation,” said Governor Roy 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.”

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. 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 $5.6 million, spread over 12 years.

Siemens Mobility North Carolina
Photo By Siemens

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. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business.

The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.

“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.”

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