The German engineering giant Siemens has received an order of 175 light rail cars from San Francisco's Municipal Transportation Agency (SFMTA), the Munich-based company announced Saturday.

Siemens said it is to deliver an initial 175 light rail cars for SFMTA's Muni transit system at a value of 648 million US dollars.

"With an option for an additional 85 cars, this is one of the biggest orders for light rail cars ever placed in the USA," a Siemens statement said.

The trains will be built at the Siemens plant in Sacramento, and the first cars are set to be delivered at the end of 2016.

"This order marks a milestone for Siemens in the history of our US Business," said Jochen Eickholt, global head of Siemens Rail Systems, adding that Siemens is a leading provider in the United States and has delivered more than 1,300 streetcars and light rail cars in 17 cities across North America.