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posted: 9/11/2020 3:34 PM

FreightCar America Inc. realigns

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CHICAGO -- FreightCar America Inc. announced additional steps in its manufacturing and operational realignment as it plans to acquire its partner's 50% interest in a joint venture in Castaños, Mexico, and consolidate all of its production there by January.

As part of this decision, FreightCar America has started the process to permanently close its manufacturing facility in Cherokee, Alabama. The company is a diversified manufacturer of railroad freight cars, that also supplies railcar parts and leases freight cars through its FreightCar America Leasing Co. subsidiaries.

In September 2019, FreightCar America announced the formation of a 50-50 joint venture with Fabricaciones y Servicios de México to manufacture new railcars and convert existing railcars at a new facility in Castaños.

The closure of the Alabama facility will align costs and manufacturing capacity with the current realities of depressed railcar demand, which have been magnified by the ongoing COVID-19 pandemic, said Jim Meyer, president and chief executive officer of FreightCar America.