A £1.5bn contract to make new trains for the London Underground has been awarded to Siemens Mobility, supporting the company's plans for a new factory in East Yorkshire and the creation of hundreds of jobs.
Transport for London (TfL) has confirmed its intention to award Siemens Mobility a contract to design and build 94 state-of-the-art Deep Tube trains to serve the Piccadilly line.
It said the contract will facilitate a multimillion pound investment in a factory in Goole, creating thousands of UK jobs.
The contract is described as a "significant step" in allowing Siemens Mobility to progress its plan, revealed earlier this year, to build a new factory in Goole to manufacture and commission trains.
The Siemens Mobility factory would employ up to 700 people in skilled engineering and manufacturing roles, plus up to an additional 250 people during the construction phase of the factory. As a result, about 1,700 indirect jobs would be created throughout the UK supply chain.
Twenty two UK suppliers have been identified in the bid to potentially work with Siemens Mobility on the build of the trains. In addition, at least 50 new apprentice and graduate positions could be created.
Sabrina Soussan, chief executive Siemens Mobility, added: "We are thrilled by today's announcement. Our metro trains travel the equivalent of 60 times around the world each week, transporting millions of passengers comfortably and efficiently.
"With this extensive knowledge and our constant focus on value provision, we can drive down lifecycle costs and significantly improve the passenger experience. This has been key to our development of a unique proposition to meet London's specific challenges and is essential to help TfL accelerate the growth of the Tube network and improve the capacity and reliability of its train services.
"Additionally we can further develop rail skills and our investment, something that is so important to our organisations and the continued success of the UK rail industry
More than 700,000 customers use the Piccadilly line every day. However, the combination of limited fleet size and old signalling technology has restricted TfL's ability to increase capacity across the line for many decades.