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Home arrow News arrow Railway arrow Amtek Auto in JV with American Railcar to Manufacture Railcars in India
Amtek Auto in JV with American Railcar to Manufacture Railcars in India Print E-mail
Written by Ganesh   
Wednesday, 25 June 2008
Mumbai: American Railcar Industries, Inc. (NASDAQ: ARII) ("ARI") has announced that, through a subsidiary, it has entered into a joint venture agreement with a subsidiary of Amtek Auto Limited ("Amtek") to form a joint venture to manufacture, sell and supply freight railcars and their components to customers in India and other countries to be agreed upon.

The joint venture, which will be owned 50% by the ARI subsidiary and 50% by the Amtek subsidiary, is expected to manufacture products from a new facility to be located in India.

The parties currently expect to commence construction of the facility during the second half of this year, following final site selection. It is expected that the joint venture could begin railcar production in 2009. The joint venture would use manufacturing methods that ARI has developed and would initially manufacture railcar types that are currently being sold in India. The parties anticipate that the joint venture would introduce and build railcars new to the Indian market, based on ARI designs, within the next few years.

"We are excited to be joining with the strong management team of Amtek to build railcars in India. We believe Amtek's depth of manufacturing experience and knowledge of Indian markets supports our partnership's short and long-term prospects for growth within India," stated James Unger, Chief Executive Officer of American Railcar Industries. He added, "We believe there is also a significant opportunity for component sourcing in India."

John Flintham, CEO of Amtek Auto Limited stated, "We are thrilled to partner with ARI to build railcars in India. Our management team is eager to combine ARI's success building high quality railcars efficiently, with our proven manufacturing track record in India."

About American Railcar Industries, Inc.

American Railcar Industries, Inc. is a leading North American manufacturer of hopper and tank railcars. ARI also repairs and refurbishes railcars, provides fleet management services, and designs and manufactures certain railcar and industrial components used in the production of its railcars as well as railcars and non-railcar industrial products produced by others. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services.

About Amtek Auto Limited

Amtek Transportation Division is a wholly owned subsidiary of Amtek Auto Limited and is a newly formed subsidiary of the Amtek Group.

Amtek Auto Limited is a leading international manufacturer of Automotive Components and Assemblies with production facilities located strategically across North America, Europe and Asia. Amtek's extensive manufacturing facilities encompass iron, gravity and aluminum castings, forgings and complex machining and assemblies.

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