Company to Build $350 Million Freight Rail Car Facility in Alabama

HAMILTON, Ontario — National Alabama Corp. will build a new manufacturing facility in The Shoals Region of northwest Alabama.

National Alabama Corp. is a newly formed subsidiary of National Steel Car Limited (NSC). National Steel Car Limited and National Alabama Corporation are wholly owned subsidiaries of National Industries Inc.

Construction of the manufacturing unit is scheduled to begin over the next few months with startup expected in early 2009.

“Together with National Steel Car’s Hamilton facility, our new Alabama manufacturing facility will further reinforce our position as one of the largest and most modern manufacturers in the North American railcar industry,” Chairman and CEO, Gregory Aziz said.

National Steel Car is currently the largest single site manufacturing facility for freight railway cars in North America, and is capable of producing 15,000 new freight railroad cars per year.

The combined operations of National Steel Car and National Alabama will increase National’s product offerings to the North American market. National Steel Car has continued to invest heavily in modern technology and new plant over the past decade and the new Alabama operation will continue that focus, employing an engineered “Greenfield” high quality manufacturing process.

With the new facility operational in early 2009, National will have additional multi-product flexibility, as well as enhanced operating capacity, utilizing the strengths of both plants. This new investment will allow National to continue to extend its strong presence with its primary customer base in the U.S.

“Successfully recruiting National Alabama Corporation was a team effort,” said Alabama Gov. Bob R. Riley. “Any time we bring a new industry to Alabama, it requires a strong partnership between the state, local officials, economic developers and the company. That partnership was out in full force on this project, and on behalf of the people of Alabama, I thank everyone who was involved in this outstanding victory.”

While specific cost figures were not released, the investment is estimated to be in the $350 million range. When in full operation, annual capacity is expected to be in the 8,000 to 10,000-unit range providing new employment for 1,800 people.

— PRNewswire