CHICAGO, Il. (WFXR) – FreightCar America has announced a joint venture with a Mexican company to manufacture railcars in Castanos, Mexico.
The announcement comes one day before layoffs begin at FreightCar’s Roanoke facility.
Christopher J. Eppel, Chief Financial Officer for FreightCar America said the company is contributing $25 million to the joint venture.
“We have partnered to make the kind of railcars that we don’t make in the U.S. They are not economically feasible (to make) in the U.S. All our competitors are in Mexico. So, to make money, we had to move to Mexico unfortunately.”Christopher J. Eppel, FreightCar America’s Chief Financial Officer
According to a Press Release, the new factory is already under construction and is expected to be up and running by mid-2020.
The work that was being done in Roanoke is being moved to another facility in Alabama.