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 today. The company will invest $220 million in Lexington, creating a new carbon neutral facility that will serve the company’s East Coast markets.
"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.”
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 United States. 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.
“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.”
The North Carolina Department of Commerce led the state’s support for the company during its site evaluation and decision-making process.
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. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
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. Even when new jobs are created in a Tier 2 county such as Davidson, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.
“We could not be more excited to welcome this high-tech manufacturing facility to our community,” said N.C. Senator Steve Jarvis. “Siemens enjoys a stellar reputation and their vote of confidence in Davidson County, the City of Lexington, and in North Carolina makes us very proud indeed.”
“Economic development projects of this scale require a great deal of collaboration between many people and organizations, both in the local area and across the state,” said N.C. Representative Larry Potts. “Lexington and Davidson County welcome Siemens Mobility to North Carolina, and all of us will help its leaders and employees find success in our state.”
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 Department of Transportation, the North Carolina Community College System, the North Carolina Ports, the North Carolina Railroad Company, Norfolk Southern, ElectriCities of North Carolina, the City of Lexington, Davidson-Davie Community College, the Davidson County Airport Authority, Davidson County and the Davidson County Economic Development Commission.