LONGANNET has been chosen as the preferred site for a new train manufacturing factory, it has been confirmed.

Around 1,000 jobs could be created as Spanish company Talgo announced plans for £40million of investment that former power station site.

The company have said Longannet was chosen for its "excellent connectivity by sea, rail and road," as well as the "availability of skilled workers" in the local area, and the "ability to create a 'pipeline' of engineers and innovators to grow capability".

Michael Matheson, cabinet secretary for transport, infrastructure and connectivity welcomed Talgo's announcement after meeting with officials in London today.

He said: “This investment is a significant achievement for Scotland and yet another endorsement of our country’s attractiveness to international investors.

"Should Talgo be successful in its bid to win the contract for HS2 rolling stock, this new factory at Longannet would bring a great number of new jobs to Fife, which would be a welcome boost for the local area.

"However, the full economic impact of such an investment, and the supply chain opportunities it would bring, would be felt right across Scotland.

"We are committed to working with Talgo and our public and private sector partners to ensure maximum benefit from the opportunity this proposed investment represents.”

After a six-strong shortlist of preferred locations for the factory was whittled down to two, Longannet's competitor site in Chesterfield will now act as an Innovation Centre.

The site will serve and develop Talgo's 'All Britain' strategy, drawing expertise from across the UK to complement the Longannet manufacturing factory.

Carlos de Palacio, president of Talgo, added: "This has been a tremendously challenging mission for Talgo, and I have personally seen excellence in all corners of the UK. It has been a difficult decision to make, as the quality has been so high in so many places.

"The establishment of a manufacturing facility at Longannet is a significant part of Talgo’s future strategy.

"I want to congratulate Paul Lewis and Scottish Enterprise, for bringing together a wide-ranging team of industrialists, academics, politicians, civil servants and development experts. Their efforts are a credit to Scotland."

The power station closed in March 2016 with the loss of 370 direct jobs, and up to 1,000 overall.

Demolition works are ongoing, with a controlled explosion bringing down coal stock towers last week.

Keith Brown, MSP for Clackmannanshire and Dunblane, said: “This announcement is extremely welcome, and a vote of confidence by a significant international company in the local skills base.

"I know that the Scottish Government and its partner agencies have worked hard to win this investment, and they deserve great credit for doing so.

“Longannet is an ideal site for manufacturing of this type, and employment boost of as many as 1000 jobs that would result from such investment would offer fantastic opportunities for many of my constituents and provide a welcome boost to our local economy.

“The plan announced is dependent on the company winning a share of the contracts to build new HS2 rail rolling stock, and I hope that success in winning these contracts will see many jobs come to this area.”