CHICAGO — Car manufacturing and leasing company FreightCar America has announced a joint venture with a Mexican heavy equipment manufacturer to build railroad cars in Castaños, Mexico.
The agreement is with Fabricaciones y Servicios de Mexico, known as Fasemex, which also manufactures railroad cars and has operations in both Mexico and the United States.
Moving manufacturing to Mexico is a cost-cutting move stemming from lower freight volume and the dampening effects of precision scheduled railroading on freight car demand, FreightCar America officials say.
“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 railcar types that weren’t economically feasible previously,” says FreightCar America CEO Jim Meyer.
FreightCar America has been phasing out its manufacturing plant in the former Norfolk & Western East End Shops in Roanoke, Va., eliminating some 200 jobs.
The company is building a new plant in Muscle Shoals, Ala., slated to begin operation in mid-2020, officials say.
Other FreightCar America facilities are in Cherokee, Ala.; Grand Island, Neb.; Johnstown, Pa.; and Shangai, China.
In addition to leasing and supplying railcar parts, FreightCar America builds coal, bulk commodity, covered hopper, mill gondola, and coil steel cars along with boxcars and intermodal and non-intermodal flatcars.
Founded in 1996, Fasemex does engineering, procurement, production, and assembly and provides contract maintenance services for mining and transportation industries including railroading.
Jesus Gil, co-owner of Fasemex, says the joint venture with FreightCar America stems from more than a year of effort and “We are excited about the growth that this represents for our company.”
Mexican cheap labour good.
Chinese cheap labour bad.
I see …
The above comments are generic in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. Find your own damn lawyer.
What is the difference between Mexico and China?
Mexico doesn’t manipulate its currencies
Mexico doesn’t have an active intellectual theft program
Mexico doesn’t bribe our Congress by purchasing billions in US securities
Mexican firms don’t buy out US firms then close them down to move the IP back to home soil
It’s a marked difference.
Japan in the 1960’s used to do #1 and #3. But they rarely if ever did #2 or #4.
Interesting juxtaposition of both articles today. Actually, I am happy for most anything that helps Mexico prosper as that in the long run helps the US. China, not so much. They seem pretty prosperous already.