New Siemens plant adds production, servicing capability: Analysis
The company’s Sacramento, Calif., production facility was constructed in the 1980s to gain a foothold in the U.S. transit market, which had become reliably funded by a portion of the federal Highway Trust Fund.
Utilizing Americanized derivatives of locomotives and railcars plying government-financed European systems, Siemens was in position to capture a rare upswing in the feast-or-famine cycle of intercity passenger rail investment.
An Amtrak order for 70 ACS64 electric motors for the Northeast Corridor was soon followed by the Brightline equipment. The company then built Venture equipment for Midwest states and California after the failure of an ill-fated Nippon Sharyo bilevel procurement, as well as trainsets for VIA Rail Canada and Ontario Northland.
Siemens couldn’t possibly fill all the contracts in Sacramento. So, in 2023, it selected an industrial-zoned greenfield site near Lexington for a second facility. The project was backed by $25 million of federal funding from Biden administration programs, plus state and local incentives. Those include infrastructure support and a performance-based North Carolina $5.6 million Job Development Investment Grant, helping the company tap an already-skilled local workforce.