Topics of Rolling Stock

July 19, 2012
Nippon Sharyo, Ltd.

Start-up of Operations at New Production Facility in Rochelle, Illinois

 July 19th, Rochelle, Illinois – Nippon Sharyo Manufacturing, LLC, a wholly-owned subsidiary of Nippon Sharyo U.S.A., Inc. began operations of their new Passenger Railcar production facility (Photo 1).

 Nippon Sharyofs strategy in opening the new production facility in the United States focuses on two elements, one to increase competiveness in the expanding passenger railcar market in the United States, and the other to respond to the increased demands for gBuy Americah and glocalizationh of the Passenger Railcar industry.

 The new production facility is also expected to decrease total production costs by reducing transportation costs and by mitigating the risks of exchange rate fluctuations. Having a new production facility in the US also offers greater flexibility for production planning and delivery schedules while increasing the gBuy Americah content and providing job opportunities in the region. 

Nippon Sharyofs employee count is approximately 140 workers currently. In 2013, they expect to increase their workforce close to 300 when the in-house manufacturing of Stainless Steel carbody shells is in full operation. New employees have been given a series of extensive training on basic skills required for passenger railcar manufacturing. More than 50 new employees were sent to Nippon Sharyo Japan over 12 weeks for various skills training such as welding, interior, mechanical, electrical, quality control and inspection work.

 The new production facility will also provide broader opportunities not only to the existing passenger railcar industry supply chain, but also to many new local and state businesses for providing various services, materials, parts and components necessary for the operation of the facility.  

 Today, Nippon Sharyo invited approximately 500 guests from various Federal, State, City and other municipal governments, related organizations, clients, contractors and vendors to the new facility for the Grand Opening Ceremony to honor the startup of operations (Photo 2). Illinois Governor Pat Quinn made the speech to the audience at the ceremony, saying that gNippon Sharyo is creating 250 new jobs in Illinois and strengthens Illinoisfs leadership in the manufacturing industry g. 

 The first contract produced in Rochelle new facility is 160 Gallery-Type Electric Multiple Unites (EMU) (Photo 3) to Metra, the Northeast Illinois Regional Commuter Railroad Corporation based in Chicago, which was awarded in October 2010. The first car is scheduled to be shipped on September 2012, and the delivery of the last car is scheduled for the summer of 2015. 

 Hereafter and between the productions of 160 EMUs for Metra, 12 Diesel Multiple Unit (DMU) Cars for Californiafs Sonoma-Marin Area Rail Transit, and 18 Diesel Multiple Unit Cars for Metrolinx in Toronto, Canada and 8 Gallery-type Bi-level Passenger Cars for The Virginia Railway Express in Alexandria, VA are scheduled for manufacturing.  

 Incorporating a spirit of teamwork of American work force and Japanese production technology, and dedication to quality production, Nippon Sharyo aims at establishing the stable operations of the new facility and acquiring new contracts. 

 

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