Nippon Sharyo Manufacturing LLC, a wholly-owned subsidiary of Nippon Sharyo U.S.A. Inc., began operations July 19 at its new passenger railcar production facility in Rochelle, IL—its first in the U.S.

In attendance at the grand opening ceremony were approximately 500 federal, state, city, and other municipal governments, related organizations, clients, contractors, and vendors.

Illinois Gov. Pat Quinn spoke during the event, saying: “Nippon Sharyo is creating 250 new jobs in Illinois and strengthening Illinois’ leadership in the manufacturing industry.”

The company reported two main goals in opening this U.S. production facility: to increase competitiveness in the nation’s expanding passenger railcar market and to respond to increased demand for Buy America and localization of the passenger railcar industry. Nippon Sharyo also said it expects the new facility to decrease total production costs by reducing transportation expenditures and mitigating exchange rate fluctuations. It also offers greater flexibility for production planning and delivery schedules while increasing the Buy America content and providing job opportunities.

The facility’s first contract is for 160 gallery-type Electric Multiple Units to Metra commuter rail in Chicago, with shipping of the first car scheduled for September and delivery of the last car in the summer of 2015. Other current orders are 12 Diesel Multiple Unit (DMU) cars for California’s Sonoma-Marin Area Rail Transit; 18 DMUs for Metrolinx in Toronto; and eight gallery-type bi-level passenger cars for Virginia Railway Express in Alexandria, VA.

Nippon Sharyo employs about 140 workers at the Rochelle plant and expects to increase that number close to 300 when the in-house manufacture of stainless steel carbody shells enters full operation next year. As part of the training process, more than 50 new employees went to the company’s facilities in Japan over 12 weeks to work on skills such as welding, interior, mechanical, electrical, quality control, and inspection.

Cutting the ribbon at Nippon Sharyo’s railcar production facility in Rochelle, IL, are, from left: front row, Akira (Kevin) Koyasu, president, Nippon Sharyo USA; Akira Nakagawa, president, Nippon Sharyo Ltd.; Katsuyuki Ikushima, chairman, Nippon Sharyo; Illinois Gov. Pat Quinn; FRA Deputy Administrator Karen Hedlund; and Matt Erskine, acting assistant secretary of commerce for economic development; back row, former Illinois state Sen. Brad Burzynski; state Rep. Robert Pritchard; state Sen. Christine Johnson; David Vaught, director, state Department of Commerce and Economic Opportunity; and Brad Middleton, representing Sen. Richard Durbin (D-IL).

 

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