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The White House and Siemens said that the engineering firm would reveal its over $220 million investment on Tuesday in North Carolina rail car factory.
The news comes when the Biden administration and other Democrats allocate billions of dollars in federal funds to modernize existing infrastructure and boost American manufacturing to stimulate private-sector spending and generate employment. Companies like IBM (NYSE:IBM) and Micron have made large expenditures in response to a law that would subsidise the production of chips (NASDAQ:MU).
By 2028, 500 new jobs, according to the business, will be created by Siemens’ new passenger-coach manufacturing facility, which will be located on a 200-acre site in Lexington, a town in central North Carolina with 20,000 residents.
In a telephone interview, Roland Busch, chief executive of Siemens AG, said, “We have a clear commitment from the administration to invest in infrastructure and move the mobility sector towards greener (power sources).
Busch said Siemens has a “strong foothold” in the market and sees longer-term growth opportunities in high-speed rail.
The company’s customers include Amtrak and dozens of transit agencies across the United States, which will be eligible for federal incentives for cleaner-powered locomotives.
According to the business, the state of North Carolina will provide funding for the growth of jobs for Siemens’ rail division. According to the White House, funding is partly derived from the infrastructure package passed by both parties in 2021.
The German manufacturer of trains and software reported its strongest-ever industrial business quarter in February and increased its full-year profit projections.
The “Northeast corridor,” one of the country’s busiest and most crowded rail tracks, has been modernized by Biden, who rode Amtrak for over three decades while serving in Congress.
The $1.6 trillion infrastructure plan includes $66 billion for rail, an increase in federal funding for trains that have never been seen before. This includes $24 billion in grants for initiatives along the Northeast Corridor.
By 2035, Amtrak plans to significantly increase its service across the country, adding up to 166 locations and up to 39 corridor lines, the company announced in November.
Mitch Landrieu, the White House official responsible for coordinating infrastructure fund disbursement, said in a statement the announcement “is further proof that we’re driving unprecedented private sector investment” with the implementation of the infrastructure law.
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