MILWAUKEE, Wis. (WTAQ) - Talgo Incorporated says it will shut down its Wisconsin train-making operations in 2012, leaving only a maintenance base in Milwaukee.

Talgo had hoped to land contracts to build 2 trains for the high-speed rail project between Madison and Milwaukee, but the federal government withdrew nearly $810 million in stimulus funding last week. That step was taken after governor-elect Scott Walker said he would kill the project.

The company hasn’t said where it might move, but it is expected to relocate to a state which is expanding its rail network. That could be Illinois.

Talgo is hiring 125 workers right now to build trains for the Hiawatha line between Milwaukee and Chicago. Those contracts will keep the Wisconsin plant operating until 2012.