US Railcar, LLC Announces Formation of US Railcar Company -- Joint Venture
February 18 2010 - 5:17PM
PR Newswire (US)
COLUMBUS, Ohio, Feb. 18 /PRNewswire/ -- Ohio-based US Railcar, LLC
and Missouri based American Railcar Industries, Inc. (NASDAQ:ARII)
("ARI") announce the formation of a joint venture to be named US
Railcar Company, LLC. The joint venture is being formed to design,
manufacture and sell Diesel Multiple Units (DMUs), an efficient
train set without a locomotive made up from self-propelled and
unpowered passenger railcars in both single and bi-level
configurations. (Photo:
http://www.newscom.com/cgi-bin/prnh/20100218/CL57506) According to
US Railcar, LLC's Managing Member Barry H. Fromm who will serve as
a Director in the joint venture, "One of US Railcar Company's goals
is to reestablish FRA compliant DMU production in the United
States." As Chairman and CEO of Value Recovery Group, Inc. ("VRG"),
Mr. Fromm led a group of initial investors in the purchase of
assets from the former Colorado Railcar Manufacturing Co. that
ceased operations in late 2008. US Railcar Company, LLC, the joint
venture of US Railcar, LLC and ARI will be led by President &
CEO Michael P. Pracht, a rail industry veteran with extensive
experience with the world's leading rail transportation companies.
"These are extraordinary times with growth opportunities for
passenger rail in the US," said Mr. Pracht. "The US Railcar Company
DMU is designed to enable new cost-effective and environmentally
friendly passenger rail service across a range of corridors and
routes, all with a proven, existing equipment platform already in
service." "ARI is excited to participate in this opportunity to
join US Railcar and bring ARI's long and proud freight rolling
stock manufacturing heritage to the passenger equipment sector,"
said ARI President and CEO James Cowan. "Our commitment to expand
and diversify ARI's manufacturing program results from ARI's desire
to grow, and build on the expected federal commitment to passenger
rail as part of a balanced national transportation system. Through
this partnership, we look forward to being an integral part of that
new growth with modern, passenger rail equipment built in the USA."
ARI will provide US Railcar Company, LLC with its experience in the
production of railcars and ARI representatives will comprise half
of the Board of the joint venture. Representatives of VRG will
comprise half of the Board of the joint venture and will bring to
the venture government contracting experience. The joint venture
plans to produce railcars on order for public authorities and
communities to improve public transit, commuter and regional rail
service. The US Railcar Company DMU was prototyped through a
demonstration project in 2002 and is currently the only DMU that is
fully compliant with Federal Railroad Administration passenger
equipment safety regulations as stated in 49 CFR Part 238. This
means the US Railcar Company DMU can be quickly pressed into
service using existing freight tracks. 1O DMUs are currently
providing reliable passenger service in Florida, Alaska and Oregon.
Available in both regional and intercity configurations, the US
Railcar Company DMU is well suited for incremental corridor
development at speeds from 79-to-90 mph. Platform enhancements
currently anticipated include a diesel-electric upgrade, increasing
speeds to 125 mph, making this American-made DMU an attractive
solution for both mature and emerging passenger rail agencies
around the country. For more information about US Railcar Company,
LLC and the DMU please check US Railcar's website at
http://www.usrailcar.com/ or contact US Railcar Company, LLC at
614-246-9465. About American Railcar Industries, Inc. American
Railcar Industries, Inc. is a leading North American manufacturer
of hopper and tank railcars. ARI also repairs and refurbishes
railcars, provides fleet management services and designs and
manufactures certain railcar and industrial components used in the
production of its railcars as well as railcars and non-railcar
industrial products produced by others. ARI provides its railcar
customers with integrated solutions through a comprehensive set of
high quality products and related services. About Value Recovery
Group VRG is an economic development consulting, government
advisory services and asset recovery and management firm that
represents state and local governments, commercial banks, private
investors and several federal agencies. Forward Looking Statement
Disclaimer This press release contains forward-looking information
that involves risks and uncertainties, including statements
regarding the joint venture's plans, objectives, expectations and
intentions. Such statements include, without limitation, statements
regarding the joint ventures prospects, the anticipated performance
of its railcars, and the anticipated growth of the market and
market acceptance for those railcars. These forward-looking
statements are based upon assumptions made as of the date hereof
and are subject to known and unknown risks and uncertainties that
could cause actual results to differ materially from those
anticipated. Joint ventures and the commencement of a new business
involve numerous risks, including difficulties associated with
cooperation and conflicts of interest among the parties, delays,
unexpected costs, and the risk that newly introduced products may
contain undetected errors or defects or otherwise not perform as
anticipated. Moreover the development of the market for the joint
venture's products is anticipated to be dependent on government
support to passenger rail development and there can be no assurance
that such support will be forthcoming or, even if forthcoming, that
the joint venture's railcars will otherwise be able to compete
successfully. Other potential risks and uncertainties relating to
ARI's business and the production of railcars are described in the
ARI's filings with the Securities and Exchange Commission. ARI
expressly disclaims any duty to provide updates to any
forward-looking statements made in this press release, whether as a
result of new information, future events or otherwise.
http://www.newscom.com/cgi-bin/prnh/20100218/CL57506
http://photoarchive.ap.org/ DATASOURCE: US Railcar, LLC CONTACT:
Michael P. Pracht, +1-614-246-9465 Web Site:
http://www.usrailcar.com/
Copyright
American Railcar (NASDAQ:ARII)
Historical Stock Chart
From May 2024 to Jun 2024
American Railcar (NASDAQ:ARII)
Historical Stock Chart
From Jun 2023 to Jun 2024