Finance

Spanish train maker CAF to open new £30m factory in South Wales creating 300 jobs

A leading Spanish train maker is opening a factory in Wales, creating 300 jobs.

CAF is ploughing £30million into the plant at the Celtic Business Park in Newport, a former steelworks that is not far from the steel hub of Port Talbot.

The Welsh government is understood to have offered a grant of around £3million, helping the area beat about 100 other locations being looked at across the UK.

Due to open in 2018, the factory will build and test trains including diesel, electric, high-speed and trams.

Investment: Spanish train maker CAF is ploughing £30m into the plant at the Celtic Business Park in Newport, a former steelworks and not far from the steel hub of Port Talbot

Welsh First Minister Carwyn Jones said: ‘This £30million investment is a major economic boost that we hope will kick-start the growth of our rail sector and create hundreds of highly skilled, very well-paid jobs.’

Welsh economy secretary Ken Skates said: ‘This will underpin the development of the rail sector in Wales and places us at the heart of an industry with massive growth potential.

‘As well as creating 300 high-calibre jobs, it also coincides with our major Welsh Government Metro rail investment in south-east Wales, details of which will be unveiled over the coming weeks.’

The investment announcement coincided with a three-day state visit by Spain’s King Felipe and Queen Letizia.

Spanish infrastructure firm Sacyr also unveiled plans for a new office in London.

Richard Garner, CAF’s UK director, said it planned to increase its work in the UK, where it has more than £800million in contracts, at a time of huge development in the industry.

CAF is looking at contracts on the new HS2 high-speed line, having worked for major projects and companies including Heathrow Express, Northern Ireland Railways, Arriva Rail North and FirstGroup.

On Wednesday, CAF announced it was buying the Nottingham engineering consultancy BWB Consulting, to help with expansion plans.

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