BARTON – Governor Robert Bentley journeyed to the mile-long FreightCar America’s $700-million railcar manufacturing plant today to offer congratulations for expanding it’s operations. Bentley remarked, “You have shown confidence in the people of Alabama. And we thank you.”
The announcement of the expansion was made inside the mile-long manufacturing facility. At times, the speakers from FreightCar America and the Governor had to speak loudly to overcome the cacophonyย of the huge assembly lines that roll out over 10 brand new railcars a day. The announcement represents a sea-change in the fortunes of the facility which saw more than its fair share of drama in the last 5 years since it was completed. At times, due to the fiasco createdย when the original company, National Steel Car reneged on its deal with Retirement Systems of Alabama which financed the project, there was doubt that the plant would ever live up to its potential. It is pretty clear at this point in time, that those doubts should be put away.
Here is what FreightCar America had to say in its media release:
“Chicago, IL, December 8, 2014 — FreightCar America, Inc. (NASDAQ: RAIL) (the Company)ย
is expanding its presence in the Shoals region of Alabama through the previously announced $10
million expansion to add an additional production line to meet growing demand for the
Company’s new types of railcars. As the Company increases production, it will add an
additional150 to 200 jobs beyond its current employment base of approximately 500 employees.
When fully operational in the second quarter of2015, the facility will have the capacity to build
approximately 6,000 to 8,000 railcars per year. With the $10 million additional capital
investment, FreightCar America’s total investment in the Shoals facility will approximate $33
million.
The new production line will increase FreightCar America’s sublease of Navis tar, lnc.’s
Cherokee, Alabama manufacturing facility to approximately one-third ofthe entire facility.
Completed in 2008, the production facility was designed to efficiently build a wide variety of
railcar types. FreightCar America has subleased a portion of the facility since the beginning of
2013, with production commencing in July of2013.
“FreightCar America has successfully diversified the Company with a number of new railcar
types, which have been well-received in the marketplace,” said Joe McNeely, President and
Chief Executive Officer. “A major part of this achievement has been the decision to
manufacture railcars at the state-of-the-art Shoals facility. Our success has a lot of contributors,
including all of our employees and our business partners, especially Navistar, the Retirement
Systems of Alabama and AIDT. We also want to thank Governor Robert Bentley and the State
of Alabama, Shoals Economic Development Authority and all of the Shoals community for their
support. We look forward to these valued relationships as we grow and make FreightCar
America a long-term valuable member of this community.”
FreightCar America, Inc. manufactures a wide range of railroad freight cars, supplies railcar
parts, leases freight cars through its JAIX Leasing Company subsidiary and provides railcar
maintenance and repairs through its FreightCar Rail Services, LLC subsidiary. FreightCar
America designs and builds high-quality railcars, including coal cars, bulk commodity cars,
covered hopper cars, intermoda1 and non-intermoda1 flat cars, mill gondola cars, coil steel cars
and motor vehicle carriers. It is headquartered in Chicago, Illinois and has facilities in the
following locations: Cherokee, Alabama; Danville, Illinois; Grand Island, Nebraska; Hastings,
Nebraska; Johnstown, Pennsylvania; and Roanoke, Virginia. More information about FreightCar
America is available on its website at www.freightcaramerica.com.ย “
The Quad-Cities Daily was on hand to record the event in photos:
