Vertex Railcar Corp. is making additional significant capital investments to expand its production capabilities in order to produce new types of railcars with greater market demand.
The first cars Vertex produced were covered hoppers used to transport frac sand. Due to depressed oil prices, new drilling activity is being delayed across the US, thus reducing the need for frac sand and the demand for sand hopper cars to transport it. In response to declining demand, Vertex is shifting production focus from sand hoppers to pursue new opportunities within the freight car market—including aggregate and food service hoppers. The company will also produce food-grade tank cars in addition to its planned crude oil tankers.
“Railcar manufacturing is a customer-driven industry that sees market conditions and commodity prices change all the time. Because of our global footprint, Vertex understands the challenges that come with the ever-changing nature of the industry,” said Vertex CEO Donald Croteau. “We are committed to the railcar market and are willing to invest in our business, our factory and our personnel in order to take advantage of market opportunities as they are presented.”
With the introduction of new railcars, Vortex has invested significant capital into the Wilmington facility to support production of new railcars and fulfil new orders.
The company is working to improve its facility with additional state-of-the-art equipment, modify its existing jigs and fixtures, expand infrastructure, adjust its workforce and retrain personnel.
“These investments will optimise our manufacturing practices, maximise throughput and allow us to respond quickly to new opportunities in the future,” said Croteau. “Vertex is very optimistic about our future and remains committed to growing our business in Wilmington, North Carolina.”
Read the article online at: https://www.drybulkmagazine.com/rail-barge/14062016/vertex-railcar-expands-railcar-portfolio-in-response-to-market-demand/