ST. CLOUD, MN, Nov. 16, 2017 /CNW/ - (TSX: NFI) New Flyer of
America Inc. ("New Flyer"), a U.S. subsidiary of New Flyer
Industries Inc. ("NFI Group"), the largest transit bus and motor
coach manufacturer and parts distributor in North America, announced today that it is
investing approximately USD $28
million for capital equipment and building preparations to
establish a new part fabrication facility in Shepherdsville, Kentucky.
The 300,000 square foot facility will fabricate parts for the
manufacture of New Flyer transit buses, MCI motor coaches and spare
parts for NFI Parts – all business units of the NFI Group.
Production is expected to commence during the second quarter of
2018 and once fully operational by December
2019, the facility expects to employ up to 550 people.
"As we continue with our goal of designing, manufacturing and
supporting the industry's best transit buses and motor coaches, we
believe that owning and control of the fabrication of key parts of
our supply chain (where we own the drawings and the intellectual
property) are fundamental to our competitiveness and controlling
overall cost, time, and quality," stated Paul Soubry, President and Chief Executive
Officer of the NFI Group. "This new facility will build on our
successful metal fabrication insourcing efforts over the past
number of years, and most recently, our efforts to consolidate our
fiberglass reinforced plastic (FRP) supply. Once fully operational
the return on invested capital is expected to be accretive to the
company's current performance levels."
The new facility, situated in Bullitt
County, will be supported by tax incentives through the
Kentucky Business Investment program. New Flyer will also receive
resources from the Kentucky Skills Network.
"New Flyer's decision to locate in Kentucky further distinguishes the
commonwealth as a top location for engineering and advanced
manufacturing in the U.S.," said Kentucky Governor Bevin. "The significant
number of jobs coming to Shepherdsville and surrounding communities
through this investment will be a major economic driver for years
to come. We thank New Flyer for selecting Kentucky and congratulate officials and
residents of Bullitt County on
this major announcement."
Wayne Joseph, President of New
Flyer of America, commented that "after extensive research, we
chose Kentucky due to its
available workforce, lower operating costs, and central location
relative to NFI Group's other U.S. manufacturing plants." The
Shepherdsville facility will also
provide additional U.S. content to assist in complying with the
increased Buy America requirements under the 2015 FAST Act. Joseph
further explained "targeted processes for this new facility include
hose manufacture, injection molding and thermoforming plastics,
metal fabrication and machining, powder coating, and electrical
component manufacture – the majority of which is currently supplied
by third parties."
NFI Group currently employs 176 people at Parts Distribution
Centers (PDC) in Louisville and
Hebron in Kentucky.
About NFI Group
NFI Group is the largest transit bus and motor coach
manufacturer and parts distributor in North America, with 31 fabrication,
manufacturing, distribution, and service centers across
Canada and the U.S. employing over
5,800 team members.
It is North America's
heavy-duty transit bus leader and offers the largest transit bus
product line under the brand Xcelsior®, incorporating
the broadest range of drive systems available, including: clean
diesel, natural gas, diesel-electric hybrid, trolley-electric, and
battery-electric. NFI Group actively supports over 44,000
heavy-duty transit buses (New Flyer, NABI, and Orion) currently in
service, of which 6,400 are powered by electric and battery
propulsion.
NFI Group is also North
America's motor coach market leader offering the Motor Coach
Industries Inc. (MCI) J-Series, the industry's best-selling
intercity coach for 11 consecutive years, and the MCI D-Series, the
industry's best-selling motor coach line in North American history.
MCI is also the exclusive distributor of Daimler's Setra S 417 and
S 407 motor coaches in the United
States and Canada. MCI
actively supports over 28,000 coaches currently in service.
NFI Group also operates North
America's most comprehensive parts organization, NFI Parts™,
providing parts, technical publications, training, and support for
its OEM product lines (transit buses and motor coaches). All buses
and coaches are also supported by an industry-leading comprehensive
warranty, service, and support network.
Further information is available on NFI Group websites at
www.newflyer.com and www.mcicoach.com. The common shares of the NFI
Group are traded on the Toronto Stock Exchange under the symbol
NFI.
Forward-Looking Statements
This press release may contain forward-looking statements
relating to expected future events and financial and operating
results of the NFI Group that involve risks and uncertainties,
including the expected cost savings, synergies and the accretive
effects of the transaction to revenue, earnings or cash flow of New
Flyer. Although the forward-looking statements contained in this
press release are based upon what management believes to be
reasonable assumptions, investors cannot be assured that actual
results will be consistent with these forward-looking statements,
and the differences may be material. Actual results may differ
materially from management expectations as projected in such
forward-looking statements for a variety of reasons, including the
ability to implement the operational changes necessary to achieve
the intended cost savings and synergies and those risks and
uncertainties discussed in the materials filed with the Canadian
securities regulatory authorities and available on SEDAR at
www.sedar.com. Due to the potential impact of these factors, NFI
Group disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable law.
SOURCE New Flyer of America Inc.