Alstom Opens $75M New York Plant, Reshores US Rail Car Manufacturing

On June 2, Alstom (OTC:ALSMY) officially opened its new $75 million Plant 4 manufacturing facility in Hornell, New York. The 135,000 square-foot facility is one of the few in the US capable of producing stainless steel car body shells for passenger rail vehicles. The investment enables Alstom to reshore production of these car body shells to the US from Brazil, which is crucial for complying with the Buy America Act’s requirement for at least 70% US content in rail cars.

A slow moving freight train, revealing the importance of railway equipment.

The new plant will immediately begin production of 200 multilevel commuter rail cars for Metra, which is Chicago’s commuter rail system, a $740 million order. The facility also provides additional capacity and manufacturing capabilities for other Alstom projects, which include multilevel rail cars for New Jersey Transit, an automated people mover system at Los Angeles International Airport, and Amtrak’s new Acela train sets for the Northeast Corridor.

The expansion is expected to create 258 new jobs, which includes in high-tech fields like mechatronics engineering and robotics, and retain 390 existing jobs. The project was supported by various federal, state, & local grants and tax credit programs, including $3.4 million in federal funding secured by Senator Chuck Schumer. The new facility solidifies Hornell’s status as the largest passenger train manufacturing site in the country.

Alstom (OTC:ALSMY) provides solutions for the rail transport industry in Europe, the Americas, Asia & the Pacific, the Middle East, Central Asia, and Africa.

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Disclosure: None. This article is originally published at Insider Monkey.