Siemens Mobility picks Lexington for $220M East Coast rail manufacturing center, adding 506 jobs

LEXINGTON, N.C. — Siemens Mobility, the nation's largest passenger rail manufacturer, will invest $220 million to build an advanced manufacturing and rail services center in Davidson County, creating 506 jobs by 2028 and marking the company's first East Coast production facility.

The 200-acre Lexington campus will feature the industry's first combined locomotive and passenger coach overhaul facility, incorporating robotic welding, 3D printing, and virtual reality training technologies from the company's Sacramento operations. When fully operational in 2024, the facility will be carbon neutral.

"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," said Marc Buncher, CEO of Siemens Mobility North America.

What's new at the facility

The advanced manufacturing center will include multiple buildings and more than 11,000 feet of rail track for testing and operations. As the company's ninth U.S. manufacturing site, it will produce passenger rail vehicles while offering first-of-its-kind overhaul services for both locomotives and passenger coaches.

Key technologies transferring from Sacramento include:

Robotic welding systems for precision manufacturing
3D printing capabilities for rapid prototyping and parts production
Virtual reality welder training programs for workforce development
Solar power and other sustainability features for carbon-neutral operations

The facility will serve East Coast customers more efficiently, complementing the Sacramento facility that has delivered more than 3,000 locomotives, passenger coaches, and light rail vehicles over 30 years.

Why it matters for Triad manufacturing

The project strengthens the Piedmont Triad's position as a transportation manufacturing hub, with average salaries of $51,568 exceeding Davidson County's average. State economists project the facility will grow North Carolina's economy by $1.6 billion over the next 12 years.

"Leading global companies like Siemens Mobility continue to choose North Carolina to build the next generation in innovative clean transportation," said Gov. Roy Cooper. "Thanks to our state's skilled workforce and proven education and training systems, North Carolina is the number one state for manufacturing."

The investment comes as the Biden administration's infrastructure law drives demand for American-made rail equipment. Siemens Mobility serves more than 40 transit agencies across the U.S. and Canada with Buy America-compliant vehicles.

The incentive package

State and local governments offered competitive incentives totaling $32 million:

$5.6 million Job Development Investment Grant (JDIG) over 12 years
$16 million combined from Lexington and Davidson County
Additional infrastructure support from the state

The JDIG requires performance verification before payments, ensuring job creation and investment targets are met. The project competed against sites in two other states before selecting Lexington.

Build-out timeline

March 2023: Site selection announced
August 2023: Groundbreaking ceremony
2024: Operations begin with initial hiring
2028: Full employment of 506 workers achieved

Workforce partners include Davidson-Davie Community College, which will develop specialized training programs for manufacturing positions ranging from welders to engineers.

Siemens' U.S. manufacturing footprint

The Lexington facility becomes Siemens Mobility's ninth U.S. location, joining sites in:

Sacramento, California (2 facilities)
Alpharetta, Georgia
Louisville and Marion, Kentucky
Pittsburgh, Pennsylvania
New Castle, Delaware
Tualatin, Oregon

The company employs 4,000 workers nationwide and partners with more than 2,000 American suppliers, including 40 in North Carolina. Parent company Siemens AG has invested $3 billion in U.S. manufacturing expansions over the past four years.

What's next

Hiring will begin as construction progresses, with positions posted through NCworks.gov and the company's careers page. The facility's location provides strategic access to East Coast rail corridors while maintaining proximity to major suppliers and customers.

For Davidson County and the broader Triad region, the investment represents continued economic diversification into advanced manufacturing, building on the area's transportation infrastructure and skilled workforce pipeline.

Sources

N.C. Department of Commerce: "Governor Cooper Announces 500 New Jobs as Siemens Mobility Selects Davidson County" (March 7, 2023)
Siemens Mobility: "Siemens Mobility to invest $220 million into North Carolina rail manufacturing facility" (March 7, 2023)
Piedmont Triad Partnership: Regional economic development updates