The entity will be consolidated and controlled by FreightCar, and FreightCar and Fasemex will equally share the JV’s profits and losses. FreightCar is committing $US 25m to the JV over the next few years through a combination of assets and cash.
The new factory is under construction and is expected to start producing wagons in mid-2020.
“Getting ourselves repositioned and on the right cost structure are core to our ‘back to basics’ strategy,” says FreightCar America president and CEO, Mr Jim Meyer. “We are making great progress in our material and fixed cost reduction efforts, and now, with the addition of this partnership in Castaños, we will become even more competitive in certain wagon types that weren’t economically feasible previously.”
