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RAIL EMPLOYMENT & NOTICES



Rail News Home M&A

10/13/2003



Rail News: M&A

ACF Industries/Greenbrier castings joint venture acquires second foundry


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Ohio Castings Co. L.L.C. recently reached an agreement with ASF-Keystone Inc. under which Ohio Castings will acquire ASF-Keystone's shuttered Alliance, Ohio, foundry.

Operating as Ohio Castings subsidiary Alliance Castings Co. L.L.C., the Alliance facility will begin manufacturing side frames and bolsters for ASF-Keystone in December. ASF-Keytone then will re-market the castings to such companies as Ohio Castings owners ACF Industries Holding Corp. and The Greenbrier Cos.

The Alliance plant was shut down last year because of a low rail-car demand. Now, demand is increasing and casting suppliers can't keep pace, ACF Industries and Greenbrier officials believe.

"The current shortage of castings is costing the industry millions of dollars in lost production and delayed shipments — re-opening Alliance will go a long way to solving that problem," said ACF Industries Vice Chairman Jim Unger in a prepared statement.

In June, Ohio Castings assumed the ownership and operation of Meridian Rail Corp.'s Cicero, Ill., foundry. Ohio Castings subsidiary Chicago Castings Co. L.L.C. now produces side frames and bolsters at the plant for ASF-Keystone, which re-markets the castings to the rail industry, including ACF Industries and Greenbrier.

Meridian Rail had planned to close the Cicero foundry — one of only three North American rail-car casting foundries.

In February, ACF Industries and Greenbrier formed Ohio Castings to address casting-supply shortages.


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