FreightCar America, Inc. Announces Joint Venture with Fasemex to Manufacture Railcars in Castaños, Mexico
September 19 2019 - 4:00PM
FreightCar America, Inc. (NASDAQ: RAIL) (“FreightCar” or the
“Company”) announced today the formation of a joint
venture with Fabricaciones y Servicios de México, S.A. de C.V.
(“Fasemex”), a Mexican company with operations in both Mexico and
the United States, to manufacture railcars in Castaños, Mexico.
When operational, FreightCar will have
substantially repositioned its manufacturing footprint to include
its state-of-the-art Muscle Shoals factory and the new factory in
Castaños. The new factory is under construction and expected to
start producing railcars in mid-2020.
“Getting ourselves repositioned and on the right
cost structure are core to our ‘Back to Basics’ strategy. We
are making great progress in our material and fixed cost reduction
efforts, and now, with the addition of this partnership in
Castaños, we will become even more competitive in certain railcar
types that weren’t economically feasible previously,” said Jim
Meyer, President and Chief Executive Officer of FreightCar America.
“While we complete construction of this new facility, we remain
deeply committed to Shoals as our primary manufacturing platform
and will continue with our plans to make incremental investments
and consolidate our Roanoke operation into Shoals.”
“On behalf of Fasemex, we are very pleased to
partner with FreightCar America on this joint venture. We are
excited about the growth that this represents for our
company. We have been working towards this moment for well
over a year now and are optimistic about our future together,” said
Jesus Gil, a co-owner of Fasemex.
FreightCar and Fasemex will share profits and
losses of the joint venture 50/50. In addition, the entity
will be consolidated and controlled by FreightCar.
FreightCar is committing $25 million to the joint venture over
the next several years through a combination of assets and
cash.
About FreightCar America
FreightCar America, Inc. manufactures a wide
range of railroad freight cars, supplies railcar parts and leases
freight cars through its FreightCar America Leasing Company
subsidiaries. FreightCar America designs and builds high-quality
railcars, including coal cars, bulk commodity cars, covered hopper
cars, intermodal and non-intermodal flat cars, mill gondola cars,
coil steel cars, boxcars and coal cars. It is headquartered in
Chicago, Illinois and has facilities in the following locations:
Cherokee, Alabama; Grand Island, Nebraska; Johnstown, Pennsylvania;
Roanoke, Virginia; and Shanghai, People’s Republic of China. More
information about FreightCar America is available on its website at
www.freightcaramerica.com.
About Fasemex
Fasemex was incorporated on March 15, 1996 in
Mexico. The company is engaged in the mechanical, metal industry
with trained personnel and equipment necessary for the manufacture,
repair, machining, cutting assembly and coating of industrial
parts. Fasemex is recognized as a well-established heavy
fabrication group dedicated to providing engineering, procurement,
production, assembly and maintenance contracting services of
complex machined and assembled industrial components for the
mining, transportation and freight railroad industries.
MEDIA CONTACT |
|
Christopher J. Eppel |
TELEPHONE |
|
(800) 458-2235 |
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