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£50m of contracts for new train factory awarded
Siemens Mobility has awarded Yorkshire-based GMI Construction Group with a £40m contract to build its new rail manufacturing site at Goole.
In addition to the main facility, GMI will also construct the four and a half kilometres of rail track needed for connection to the main railway line. GMI’s commitment to using local suppliers, emphasis on employment skills and education, as well as its record of successful project delivery was key to securing the contract.
It is part of the first phase of investment in Siemens Mobility’s new £200m train manufacturing plant and rail supply chain village, which has seen contracts worth a total of £50m let to UK companies – the majority of which are based locally in Yorkshire.
Sambit Banerjee, managing director of Siemens Mobility rolling stock and customer services, said: “Our goal is to really put Goole on the map. We want to create more than just a rail manufacturing factory, this is about generating long-term investment, skills and jobs.
“We are actively looking for as many UK suppliers as possible to contribute to Goole’s success. The appointment of GMI as main contractor, with shared values and growth ambitions for the local area, is a clear step in the right direction. Together we will make this an important and sustainable rail centre of excellence for the future.”
The first trains to be manufactured in Goole will be new Tube trains for London’s Piccadilly line. Transport for London is committed to supporting the wider UK through its supply chain, showing how investing in the London transport network bolsters the nation economically.
Lee Powell, divisional managing director at GMI Construction Group, added: “We are delighted to be working on the Goole project. We are fully committed to the local area, just as Siemens Mobility are. We have a very strong local supply chain and everyone who is involved in this project from GMI Construction lives within a 25-mile radius of the site. We have an Employment and Skills Plan including creating apprenticeships and employing those who have previously been unemployed and we will be engaging with local educational establishments and charities.”
In addition to GMI’s £40m contract, Siemens Mobility has contracted a further £10m to other UK suppliers. Local suppliers supporting the construction include: C R Reynolds (enablement works), Clay 10 Creative (site visuals) and Premier Modular (temporary offices).
The UK supply chain involvement also extends to train components. The latest appointments include Yorkshire-based LPA Lighting for the interior train lighting, Midlands-based suppliers Baker Bellfield to supply cab partition walls and I M Kelly for driver seats.
Scheduled to open in 2023, Siemens Mobility’s Goole development will create up to 700 direct jobs, with a further 250 roles created during the construction phase and an additional 1,700 indirect supply chain opportunities. The company plans to create an associated rail supplier village and innovation centre with co-located suppliers making Goole a rail centre of excellence for the UK.
Grant Shapps, Secretary of State for Transport and Northern Powerhouse Minister, concluded: “The North is the birthplace of our railways, with a rich history of manufacturing excellence, so it is fitting that the £40 million contract to build the UK’s newest train factory has been awarded to a Yorkshire company. This will create new skilled jobs in Goole, boost local supply chains and generate long-term investment.”