Siemens has awarded a huge £40m contract to Yorkshire-based GMI Construction Group PLC to build its new rail manufacturing site at Goole.
The contract reflects Siemens support and commitment to UK jobs, growth and supporting the Government’s levelling up agenda.
As well as the main facility, the construction company will build 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, education and its prestigious record of project delivery was said to be key to the contract being secured.
The contract forms 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 £50m let to UK companies, the majority of which are based locally in Yorkshire.
The first trains to be manufactured in Goole will be new Tube trains for London’s Piccadilly line. Transport for London has also pledged a committed to supporting the wider UK through its supply chain.
In total, Siemens Mobility currently works with around 3,000 suppliers, 47% of which are UK-based SMEs. Around 90% of Siemens Mobility Limited’s spend is worth UK-based suppliers.
Prime Minister, Boris Johnson, said: “I am delighted to see the huge strides that have been made by Siemens Mobility since I visited their site in Goole last summer.
“As they develop the state-of-the-art rail facility, their commitment to invest in local suppliers – boosting jobs and unlocking growth in Yorkshire – is a fantastic example of how we can level up across the country and build back better from the pandemic.”
Secretary of State for Transport and Northern Powerhouse Minister Grant Shapps said: “The North is the birthplace of our railways, with a rich history of manufacturing excellence, so the £40 million contracts to build the UK’s newest train factory should be awarded to a Yorkshire company.
“This will create new skilled jobs in Goole, boost local supply chains and generate long-term investment - welcome news as we work to level up communities across the North and build back better from the pandemic.”
Sambit Banerjee, Managing Director of Siemens Mobility Rolling Stock & Customer Services, added: “Our goal is to 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 a 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.”
Lee Powell, Divisional Managing Director at GMI Construction Group, said: “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.”
Images: Siemens Mobility Limited