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Railcar producer FreightCar America has completed key steps to relocate its manufacturing process from Alabama to Mexico. 


According to the company’s news release, dated Oct 12, it terminated the lease at its Shoals facility, located in Cherokee, Alabama, early and has already begun producing railcars at its new plant in Castanos, Mexico. The first car was produced in early September and the manufacturer is now ramping up to full-scale output so that it starts 2021 off strong, the company said. Production at Shoals ceases at the end of this year. 


FreightCar America’s new Mexican plant is certified, and now the company awaits final approval to begin shipping railcars from the facility. The company also secured a $20mn credit facility with Siena to go along with its $50mn revolving credit line with BMO Harris Bank.


FreighCar delivered 100 railcars in Q2 2020, with an order backlog of 1,839 cars worth $207mn. 


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