Introducing the Shoals Facility
FreightCar America, Inc.
Leases Railcar Manufacturing Capacity
Chicago, IL, February 19, 2013 -- FreightCar America, Inc. (NASDAQ: RAIL) today announced that it has sub-leased approximately 25% of Navistar, Inc.’s Cherokee, Alabama manufacturing facility. Opened in 2008 and located in the Shoals region of Alabama, the state-of-the-art production facility was designed to efficiently build a wide variety of railcar types. FreightCar is preparing the Shoals facility for operation, with the first deliveries of new railcars expected in the second half of 2013. When fully operational, the facility will have the capacity to build over 7,000 railcars per year.
In connection with the transaction, the Company also entered into several related agreements with Navistar for the supply of parts and production support services and the purchase of production equipment at the Shoals facility. The Company expects to invest up to $23 million to equip and make the facility operational.
Ed Whalen, President and CEO, said “This transaction is an important part of our long-term growth strategy as we continue to expand our railcar product and service offerings outside of our traditional coal car market. While our existing facilities will continue to support our coal products, the Shoals facility will allow us to produce a broader variety of railcars in a cost effective and efficient manner. In addition, the facility layout, automated production equipment, proximity to key suppliers and new supply agreements will increase our flexibility and make us more competitive in the marketplace. We very much appreciate the support that we have received from the State of Alabama and local Shoals region communities as we make this facility operational.”
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Welcome to FreightCar America
FreightCar America has been building railcars for more than 110 years. With this heritage always in mind, we are putting our core values into action. For our customers, this means delivery of on-time, high-quality and affordable railcar solutions. For our employees, these values guide each of our decisions. For our investors, these guiding principles are how we return value to shareholders.
FreightCar Rail Services
We offer more than 100 years of combined expertise in railcar maintenance, fleet management, railroad operations and railcar acquisition, as well as state -of-the-art technology to ensure that your operations run efficiently. FreightCar Rail Services shops have the capacity you need and the latest technology to provide you with the information you want. We are small enough to understand your needs and customize services to meet them.
Our Commitment to Innovation
Along with our focus on continuous improvement and innovation in coal carrying railcars, our current product development efforts include articulated intermodal double-stack railcars for fuel efficient movement of containerized goods as well as autoracks used in the efficient transportation of light vehicles.
FCA’s light weight, mechanically fastened, articulated intermodal double-stack railcar was designed to meet the growing demand for movement of containerized goods. Intermodal railcar solutions provide superior fuel efficiency while contributing to reduced highway congestion.