Swiss-based rail manufacturer Stadler is significantly expanding its Salt Lake City manufacturing footprint through a $189 million investment in Utah, a move that aims to create 250 jobs over the next 15 years. The expansion includes the recent opening of a new 50,000-square-foot welding facility designed to produce aluminum train car bodies locally.
Details of Project Interlocken
The expansion, known as Project Interlocken, was announced by EDCUtah on September 1, 2025. The company intends to utilize the investment to bolster its existing operations in Salt Lake City, which serves as the U.S. headquarters and primary manufacturing facility for Stadler North America. This growth includes a focus on producing various rail vehicles, such as light rail, metro, diesel-electric, and hydrogen-powered trains for the North American market.
Economic Development Impact
Lorena Riffo Jenson, director of Salt Lake City’s Department of Economic Development, described the expansion as a clear example of human-centered economic development. She noted that the project includes a $70 million investment alongside 250 new jobs, which she said strengthens the local workforce and ensures opportunity is created at home.
New Welding Facility Milestones
The expansion follows a period of significant recent milestones for the manufacturer. On September 25, 2025, Stadler celebrated the opening of its new welding hall on the Salt Lake City campus. This facility marks a shift in production strategy, as aluminum car bodies are now being welded on-site rather than being shipped from the company's welding facilities in Europe.
Local Workforce and Expertise
This transition is expected to slash transit times and increase the local manufacturing footprint. According to Stadler, the new facility will create up to 20 new positions for local welders and technicians by the end of 2026. To ensure a successful transition, welding experts from Stadler's competence center in Hungary have been on-site in Salt Lake City to share best practices and facilitate the transfer of expertise.
Increasing Domestic Manufacturing Content
The new welding facility has a direct impact on the company's ability to meet federal requirements. Stadler reported that the move increases its domestic content in the United States to approximately 80 percent, with the remaining 20 percent consisting largely of supplies from Europe. The company is currently analyzing its supply chains with the goal of further reducing foreign components.
Compliance with Buy America Act
This increase is critical for compliance with the Buy America Act. Since 2016, the Act has required Stadler to demonstrate that at enough than 70 percent of its value creation is generated within the United States when U.S. tax money is used to finance projects. Martin Ritter, CEO of Stadler North America, stated that the company's goal is to build a future where American-made trains are synonymous with world-class quality.
The expansion was made possible through a collaborative effort involving several state and local entities. EDCUtah reintroduced Stadler Rail to the Governor's Office of Economic Opportunity’s (GOEO) Economic Development Tax Increment Financing (EDTIF) incentive program. The GOEO subsequently approved Stadler for the EDTIF program to assist with the project.
Jefferson Moss, executive director of the GOEO, said that railway manufacturing positions Utah as a hub for innovation and next-generation transportation. He added that investments like this create lasting value through skilled careers and stronger communities.
The Utah Inland Port Authority (UIPA) Board also provided support for the expansion. On March 24, 2025, the board approved an incentive that allows for a maximum of 10 percent rebate on Stadler's property tax liability over a 25-year period. Ben Hart, executive director of UIPA, stated in March that the expansion would drive innovation in zero-emission passenger rail technology and strengthen local supply chains.
Salt Lake City Mayor Erin Mendenhall attended the grand opening of the welding facility on September 25, 2025, to praise the investment. She noted that manufacturing train car bodies locally means more jobs and a more sustainable future for the region.
Stadler has already established a significant presence in the region, having opened its Salt Lake City facility in 2019. The company has delivered high-profile projects including metro trains for Atlanta’s MARTA and the first hydrogen-powered trains for California. Most recently, Stadler announced it will build the next-generation TRAX light-rail system for the Utah Transit Authority.
