The agreement is part of preparations Talgo is making to ensure it is ready to deliver contracts it is currently bidding for, should the company be successful in winning them.
Talgo UK was established on October 23, with Mr Jon Veitch appointed as managing director. Veitch joined Talgo in 2017 as its UK & Ireland country representative, with his roles including identifying a site in Britain where trains could be manufactured.
The framework agreement sets out each party’s commitment, which will ensure that the proposed factory is completed at an agreed time and to an agreed specification, should it be awarded the contracts.
Talgo says it intends to manufacture the trains instead of simply assembling them, and wants to source components from within Britain instead of importing them, which will grow local manufacturing capability, strengthen supply chains, create jobs, and boost local economies. It will also use the facility to fulfil orders from outside Britain.
Talgo says a key part of its strategy in Britain is knowledge transfer to build the domestic capacity for research and development. An innovation hub is planned in Chesterfield, which will act as a focal point for Talgo UK’s research and development.
“Scottish Enterprise and our partners are incredibly excited by Talgo’s plans for Longannet, which would deliver 1000 direct jobs and a host of supply chain opportunities for companies in Scotland,” says Scottish Enterprise executive director, Mr Paul Lewis.
Talgo is one of five bidders for the £2.75bn contract to supply at least 54 high-speed trains for phase one of Britain’s High Speed 2 (HS2) line linking London and Birmingham. The company also supplied the rolling stock for the Haramain high-speed line between La Mecca and Medina in Saudi Arabia, and is supplying Avril high-speed train fleet to Spanish operator Renfe.
