Plans for 1,000 jobs and train plant derailed

Plans to create 1,000 jobs and a £40 million train factory in Fife have been derailed after the firm failed to win HS2 contracts.

Spanish firm Talgo proposed to create an 80,000sq m factory and up to 5,000 jobs on the site of Longannet Power Station.

Talgo hoped to win a significant contract from HS2 for its high-speed rail network in England, but instead contracts worth £2 billion were awarded to two plants in England.

Talgo UK managing director Jon Veitch said the announcement was disappointing, adding that the Longannet facility remains a “significant” part of the firm’s future plans.

He said: “The recent award of a train order to another company is a disappointment to the people of Scotland and to the Talgo team.”

Talgo announced its plans in October 2018 for a £40m investment in a facility near Kincardine, initially suggesting it was conditional on winning a big contract for HS2. Its proposals received planning permission from Fife Council in December 2019.

In February 2020, Talgo unveiled one of its high-speed coaches in Kincardine as it reaffirmed its commitment to Fife.

The firm, which has its UK base in Chesterfield, said it would go ahead with the multi-million-pound project and that the work did not depend on the HS2 contract.

In June this year it missed out on a contract to supply rolling stock for HS2.

Talgo launched legal action against HS2 in the summer in relation to the tender process, reaching an out of court settlement.

In the summer, the Spanish firm suggested the Fife facility may be needed with its Spanish plants operating at capacity.

Mr Veitch said: “Talgo’s aim is to establish true manufacturing – rather than assembling from parts made overseas.

“This means that we will draw from materials and expertise across the UK.

‘This keeps more money in the UK economy and creates more skilled longterm jobs.

“Our plans for building Longannet are expected to swing into action as soon as we get an appropriate train order.

“That’s why we are supporting the planning process – to make sure that we’ll be ready on day one.”

A Scottish Enterprise spokesman said: “While it is disappointing that Talgo have not been successful in their bid for the HS2 contract, the company has advised Scottish Enterprise that they remain committed to bringing operations to Scotland.

“We will support them to do so once we see their revised plans.

“In the meantime, we continue to promote Longannet as an attractive proposition for potential investors.

“We are still working to develop Scotland as an international centre of rail excellence and innovation.”

DISAPPOINTMENT: Talgo was unsuccessful in its bid to land HS2 contracts.