Work is under way on the factory which CAF (www.caf.net) — a rolling-stock manufacturer with plants in Brazil, Mexico and the USA, as well as Spain — is building at Newport in South Wales to support its expansion in the UK market.

The company expects to employ 200 people at the plant when it opens later this year, increasing to 300 in 2019.

Recruitment is to start this spring, with opportunities for skilled technicians and engineers, management and support staff.

Training and apprenticeship schemes will be offered from this autumn.

CAF is investing £30 million in the plant, which is being built by principal contractor Bowmer & Kirkland at St Modwen’s Celtic Business Park on the site of the Llanwern steelworks. It has also received grant support from the Welsh Government’s Inward Investment Programme.

The Spanish company, which currently has orders to build coaches and ‘multiple units’ for Caledonian Sleeper, TransPennine Express, West Midlands Trains and Northern, said the factory would “strengthen its position as a manufacturer of choice for the UK rail industry”.

The 15,000m² facility is being designed to build a range of vehicle types, including trams, metros, suburban trains, inter-city trains and high-speed trains.

CAF’s UK director Richard Garner says the company will have the “flexibility to respond to the requirements of both existing and new customers by providing the most complete offering of any rolling-stock provider operating in the UK”.

CAF also says it plans to develop a cluster of local and national companies to supply components to the factory.