- Nippon Sharyo Manufacturing, LLC, a wholly-owned subsidiary of Nippon Sharyo U.S.A., Inc. today celebrated the opening of their expanded production facility, Shop 3, located in Prologis Park - Rochelle. The new facility will help Nippon Sharyo become even more competitive in the United States passenger railcar market, and meet the Passenger Railcar industry's growing demands for "Buy America" standards. Nippon Sharyo is committed to utilizing "locally" sourced products and services through businesses that create jobs for workers in Illinois and across the United States of America.
The contract for Bi-Level Passenger Railcars (130 railcars with an option for an additional 300) awarded in November 2012 by the California Department of Transportation (Caltrans) and the Illinois Department of Transportation (IDOT) is funded by the Federal Railroad Administration (FRA). FRA funding has a "100% Buy America" requirement under 49 U.S.C. §24405(a). With the completion of Shop 3 all components required for this project will be produced in America, thus meeting the FRA
The expansion also opens even more job opportunities in the region. Currently Nippon Sharyo has over 400 employees in the original Shop 1 and Shop 2, and Shop 3 has opened an additional 90 manufacturing jobs. The new facility has also created many opportunities for U.S. based vendors due to the increased need for U.S. made materials, parts, and services.
For today's opening ceremony, Nippon Sharyo invited approximately 200 guests from various Federal, State, City and other municipal governments, related organizations, clients, contractors and vendors to join in celebrating the Shop 3 Expansion Project Opening Ceremony. Guest speakers included Illinois Governor Pat Quinn, FRA Administrator Joseph C. Szabo, Caltrans Acting Chief of the Division of Rail Bruce Roberts, IDOT Director of the Division of Public and Intermodal Transportation Joseph Shacter, and Nippon Sharyo Chairman Katsuyuki Ikushima.
"Nippon Sharyo continues to create good-paying jobs while producing products that will propel us into the future of transportation," Governor Quinn said. "Their growth has been phenomenal, their rail cars are in demand, and they are doing it all using 100 percent American made components". "Nippon Sharyo is proof that federal rail investments expand the economy and create jobs," said Federal Railroad Administrator Joseph C. Szabo. "This is a state-of-the-art U.S. railcar manufacturing
facility that has been built from scratch – and now expanded – in just a few years, creating 400 jobs onsite and more throughout its domestic supply chain. Our Buy America program requires the railcars being built here to be 100 percent American made, and Shop 3 allows Nippon Sharyo to fully meet these requirements and ramp up production through 2018."
"We will now be able to fabricate, weld, and assemble parts for our car body shells right here, making Nippon Sharyo a 100% Buy America compliant rail car builder. From start to finish our rail cars will be made in the U.S. for use in the U.S. I hope we will become the top passenger railcar builder in North America," said Nippon Sharyo Chairman Katsuyuki Ikushima. Nippon Sharyo hopes that beginning with the Bi-Level Project with Caltrans and IDOT, Shop 3
will be the start of a new era of high speed rail in America. Nippon Sharyo continues to strive to create quality products that improve public transportation for all people.