Company still has hopes for Fife jobs despite HS2 fears.

Plans for Longannet factory are not reliant on winning HS2 contract

Sources close to the train building company behind plans to bring more than 1,000 jobs to Fife say the project could still happen if the controversial HS2 scheme is scrapped.

A question mark is hanging over Spanish manufacturer Talgo’s proposals for a new £40 million factory at Longannet after the government launched a review of the high-speed rail link.

However, The Courier has been assured the Talgo project is still very much on track, with a spokesman insisting the plant is not dependent on it winning the contract to supply the fleet for HS2.

“Recent announcements regarding a review of HS2 are a matter for the UK Government,” the spokesman said.

“Although HS2 is a very important contract, Talgo’s plans for Longannet are not solely reliant on it.”

The company has previously hinted it would require a large order to “anchor” the factory before construction can begin.

Talgo Group president Carlos de Palacio Oriol said the firm would be able to start manufacturing 18 months after winning a contract.

“We need a critical mass to justify such a movement,” he said.

“But if we get an order we hit the button and start the next day.”

Talgo is one of five bidders for the HS2 contract, along with Hitachi-Bombardier, Alstom, Siemens and CAF.

Sources say the firm is targeting contracts in developing markets in South America, Africa and Australia – with trains expected to be exported from a new Longannet depot.

Talgo has based its offer for the supply of trains to HS2 on its Avril model, the latest iteration of very-high speed trains that could operate at more than 235mph between London and Birmingham as part of the first stage of the project.

Phase one of the development is due to open at the end of 2026, with a second phase to Leeds and Manchester scheduled for completion by 2033.

Transport secretary Grant Shapps said yesterday that “any outcome is possible” on HS2.

The review, which has been launched amid growing concern that HS2 cannot be built to its current specification within the £55.7 billion budget, is being led by former HS2 Ltd chairman Douglas Oakervee with Lord Berkeley – a long-term critic of the high-speed railway scheme – acting as his deputy.

The Department for Transport (DfT) has said the review will consider a number of factors relating to HS2, including its benefits, impacts, affordability, efficiency, deliverability, scope and phasing.

A final report is to be sent to Mr Shapps, with oversight from Prime Minister Boris Johnson and Chancellor Sajid Javid, by the autumn.

“If we get an order we hit the button and start the next day. TALGO GROUP PRESIDENT CARLOS DE PALACIO ORIOL