TALGO have said their £40 million investment in a train manufacturing plant at Longannet remains on track despite missing out on another HS2 order.

The Spanish firm announced in October 2018 their plans for a factory at the old power station at Kincardine that would employ 1,000 people but work has yet to start.

And there was speculation that missing out on a contract last week to build 54 high-speed trains for the HS2 project could see it hit the buffers.

But a Talgo spokesperson dismissed the idea and stated: "Plans continue and, as we've always said, the precise timing will depend on an appropriate order or group of orders.

"There are other irons in the fire."

In June, Talgo missed out on a contract to manufacture rolling stock for HS2, the high-speed railway network that's being built to link London, the Midlands and the north, with connections to Scotland, and launched legal action in relation to the tendering process.

They said at the time that picking up such an order would allow them to "push the button" and start work on the Longannet factory earlier than planned.

A spokesperson explained: “When we first came forward with plans, people thought it was all predicated on this one bid but Talgo are pursuing other orders from around the world and there are other interesting opportunities in the British Isles.

“It’s not only building for the UK market but also building for export that is really uppermost in our minds.”

Last week, they missed out on another HS2 contract, this one worth £2 billion, for 54 fully electric trains capable of speeds of up to 225mph.

They will be built at two plants in England, at Alstom’s Litchurch Lane works in Derby and Hitachi’s factory at Newton Aycliffe in County Durham.

But Talgo insisted nothing has changed and they remain committed to Longannet.

The company intimated previously that with both Spanish train-building factories at or near full capacity, plenty of old stock that needs replaced, and renewed interest in rail travel both here and in Europe, there was a need for the Longannet plant with or without HS2 contracts.

And a major step towards clearing the site for development took place last week with First Minister Nicola Sturgeon pressing the button to start the demolition at the old coal-fired power station of the huge chimney, a feature of the West Fife skyline for around 50 years (see page 23).

A Scottish Enterprise spokesman said: “While it is disappointing that Talgo have not been successful in their bid for the HS2 contract, the company have advised Scottish Enterprise that they remain committed to bringing operations to Scotland and 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, all the more so following the collaboration between SE and Scottish Power to get the site ready for development.

"And we are still working to develop Scotland as an international centre of rail excellence and innovation.”