Spanish train manufacturer Talgo Inc. will build a high-speed train assembly plant at the former Tower Automotive site in Milwaukee, Gov. Jim Doyle announced Tuesday.

The state government estimates the new facility will directly create 125 jobs in Milwaukee and indirectly create 450 jobs at companies located throughout the Midwest, providing supplies and services to Talgo, according to a statement.

“I’m proud Talgo will locate its U.S. rail car assembly facility at the former Tower Automotive site in Milwaukee,” Doyle said in the statement. “Wisconsin will see real economic benefits of high speed rail for generations to come. High speed rail is the future of transportation — and it is a really great thing for the state of Wisconsin to be leading the way.”

Last July, Doyle announced Talgo would produce two train sets for Wisconsin and also build assembly and maintenance facilities in the state, but the location for the facilities were not determined at the time.

Nonetheless, the company’s choice of Milwaukee does not come as a surprise considering the variety of advantages the city offers, such as a long history of manufacturing tradition and a readily available workforce, said Julie Granger, spokesperson for the Milwaukee Chamber of Commerce.

“Local reception here was very positive because it shows the collaborative effort of regional economic development groups like Milwaukee-7 can more easily attract the big company like Talgo,” Granger added.

Talgo CEO and President Antonio Perez said in a statement the decision was made on careful analysis of economic and technical or operational conditions, logistics, cost of living, training facilities in the vicinity and availability of a skilled workforce.

“We believe that the Tower site will allow us not only to deliver the train sets on time, but it will also allow for future growth,” Perez said in the statement.

Doyle’s spokesperson Adam Collins explained President Barack Obama’s support of high-speed rail projects certainly helped to improve Wisconsin’s future economy.

The Wisconsin Legislature voted to accept more than $820 million in federal stimulus money from the American Recovery and Reinvestment Act earlier this month. The money would be used to build a high-speed passenger rail service between Milwaukee and Madison and to install crossovers between Chicago and Milwaukee.

“Though the state agreed to purchase the two trains independently of the Recovery Act, now with the on-site facility and more services to provide, it will provide benefits throughout the region,” Collins said.

Already, the Oregon Department of Transportation said it would buy two trains made at the new Talgo factory in Wisconsin, Collins added.

University of Wisconsin business professor Tom Eggert also welcomed the governor’s announcement and said the plant would bring both short and long-term benefits to the state.

“I think it’s fabulous news for the state and our economy as we recover from the last recession. It is a shining and leading example of government’s commitment of creating green jobs for the future,” Eggert said.