FreightCar America Opening of Production in Barton, Alabama
BARTON INDUSTRIAL PARK – It’s been a long time coming. There were setbacks, misdirection. Some would make a claim of outright duplicity on the part of a big Canadian company.
But that’s old news.
There’s a new team in town at the mile-long assembly plant at the Riverfront Industrial Park. And the future is looking bright for Shoals employment. The first official railcar manufactured by FreightCar America in the Barton facility was on display Wednesday to invited guests and media representatives. Weighing in at nearly 27-tons, it was a big flatbed. One would think that having a grand opening in a room with a full size railcar would make for a cramped-space. But not here. The plant is long and wide, so long, in fact that guests couldn’t see the far end. Up on that end, Navistar, the building owner, today is manufacturing components for FreightCar America. Navistar plans to eventually manufacture a new truck design in its portion of the facility as soon as market conditions warrant.
Things are looking up.
Here is the news-release from FreightCar America: “FreightCar America Commences Production at Alabama Facility Chicago, IL, July 17, 2013 — FreightCar America, Inc. (NASDAQ: RAIL) today announced that it has commenced production at its new Shoals facility in Cherokee, Alabama. The Company sub-leased approximately 25% of the manufacturing facility from Navistar, Inc. earlier this year. The state-of-the-art production facility is designed to efficiently build a wide variety of freight railcar types.
Joseph McNeely, President and COO, said, “This new plant is an important part of our long-term growth strategy as we continue to expand and diversify our railcar product and service offerings outside of our traditional coal car market. This operation, with its excellent layout and production equipment, greatly improves our flexibility and competitiveness. I would like to recognize Navistar for their part in making this opportunity possible.”
Chief Executive Officer Ed Whalen added, “We appreciate very much the support that we have received from the State of Alabama, the Retirement Systems of Alabama, the Shoals Economic Development Authority, and many others from the greater Shoals area as we begin operation here.”
Officials attending the ceremonies today included Hollie Pegg, Assistant Director of Business Development for the Department of Commerce, representing Governor Robert J. Bentley, Dr. David Bronner, CEO, Retirement Systems of Alabama, Tuscumbia Mayor Bill Shoemaker and Warren Johnson, Treasurer of the Shoals Economic Development Authority (SEDA), as well as other Alabama state and local officials, and FreightCar America officials.
“The further utilization of this facility will add energy to the local business community, and is good news for the citizens of the Shoals area,” Johnson said. FreightCar America, Inc. manufactures railroad freight cars, supplies railcar parts, leases freight cars through its JAIX Leasing Company subsidiary, and provides railcar maintenance, repairs and management through its FreightCar Rail Services, LLC subsidiary. FreightCar America designs and builds coal cars, bulk commodity cars, flat cars, mill gondola cars, intermodal cars, coil steel cars and motor vehicle carriers. It is headquartered in Chicago, Illinois and has facilities in the following locations: Clinton, Indiana, Cherokee, Alabama, Danville, Illinois, Lakewood, Colorado, Grand Island, Nebraska, Hastings, Nebraska, Johnstown, Pennsylvania, and Roanoke, Virginia. More information about FreightCar America is available on its website at www.freightcaramerica.com. “
The plant was built in 2007 for a Canadian Railcar manufacturing company, National Steel Car, with funds provided by Retirement Systems of Alabama (RSA). The bill for construction of the plant was nearly $700-million dollars. But they never built anything there. National Steel Car eventually reneged on its part of the bargain and walked away from Barton, leaving the RSA holding the bag. The plant sat under-utilized for several years, while Dr. David Bronner, RAS Chief Executive Officer worked to find a suitable partner. The plant continued on under the name of National Alabama, after National Steel Car balked. National Alabama actually built some cars and delivered a small number to customers. But it wasn’t enough. Then along came Navistar and everything changed.
And David Bronner still has cards left to play in the situation with National Rail Car. It’s not over. Not by a long-shot. When National Steel Car walked out on their deal with RSA, they set a trajectory for themselves that few people who have dealt with Bronner would envy.
Things are looking good out in Barton these days. Here’s what Dr. Bronner had to say:
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