TALGO missed out on a contract to supply rolling stock for HS2 but it won't derail their plans for the old power station site at Longannet.

Despite their losing bid – and launching legal action in relation to the tendering process – the Spanish company said they were still on track to deliver a train-building factory at Kincardine which will create 1,000 jobs.

The HS2 contract would have allowed them to "push the button" and start building the Longannet plant earlier but it's not the end of the line.

A spokesperson for Talgo said: "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."

And, 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's a need for the factory at Longannet with or without HS2 contracts.

The spokesperson insisted: "We continue with the exact same enthusiasm. We have huge support from the Scottish Government and on a daily basis we're working with Scottish Enterprise and others to push our plans forward."

Rather than an assembly line production, with parts shipped in from around the world, Talgo believe their factory, as well as plans for apprenticeships and a technology centre, will create high-quality jobs and opportunities.

The spokesperson added: "It may take a little longer but we are undeterred from our goal of bringing true manufacturing to the area, with raw materials, construction and manufacturing going in one end and real trains coming out the other end.

"Our strategy is really strong and we fervently believe we will be successful in building a plant in Longannet as the orders come in."

The High Speed Two (HS2) project to build a new high-speed railway linking up London, the Midlands and the north, will also connect to existing lines to Scotland.

Talgo put in a bid to provide HS2 with rolling stock but were informed by HS2 they would not be continuing to the next stage of the procurement process.

The company launched legal action and an out-of-court settlement has been reached with HS2 Ltd.

Jon Veitch, Talgo UK managing director, said: "After proceedings were commenced in March by Talgo against HS2 Ltd concerning the rolling stock manufacture and maintenance procurement for HS2, the parties have agreed to a mutually-acceptable resolution of these claims.

"Talgo remains fully committed to the UK rail industry and wishes HS2 well in delivering this significant and important project.”

German manufacturer Siemens have also launched a legal action against HS2, filing a procurement claim last month.