US Railcar, LLC Announces Formation Of US Railcar Company -- Joint Venture
COLUMBUS, Ohio, Feb. 18 /PRNewswire/ -- Ohio-based US Railcar, LLC and Missouri based American Railcar Industries, Inc. (Nasdaq: ARII) ("ARI") announce the formation of a joint venture to be named US Railcar Company, LLC. The joint venture is being formed to design, manufacture and sell Diesel Multiple Units (DMUs), an efficient train set without a locomotive made up from self-propelled and unpowered passenger railcars in both single and bi-level configurations.
According to US Railcar, LLC's Managing Member Barry H. Fromm who will serve as a Director in the joint venture, "One of US Railcar Company's goals is to reestablish FRA compliant DMU production in the United States." As Chairman and CEO of Value Recovery Group, Inc. ("VRG"), Mr. Fromm led a group of initial investors in the purchase of assets from the former Colorado Railcar Manufacturing Co. that ceased operations in late 2008.
US Railcar Company, LLC, the joint venture of US Railcar, LLC and ARI will be led by President & CEO Michael P. Pracht, a rail industry veteran with extensive experience with the world's leading rail transportation companies. "These are extraordinary times with growth opportunities for passenger rail in the US," said Mr. Pracht. "The US Railcar Company DMU is designed to enable new cost-effective and environmentally friendly passenger rail service across a range of corridors and routes, all with a proven, existing equipment platform already in service.""ARI is excited to participate in this opportunity to join US Railcar and bring ARI's long and proud freight rolling stock manufacturing heritage to the passenger equipment sector," said ARI President and CEO James Cowan. "Our commitment to expand and diversify ARI's manufacturing program results from ARI's desire to grow, and build on the expected federal commitment to passenger rail as part of a balanced national transportation system. Through this partnership, we look forward to being an integral part of that new growth with modern, passenger rail equipment built in the USA." ARI will provide US Railcar Company, LLC with its experience in the production of railcars and ARI representatives will comprise half of the Board of the joint venture. Representatives of VRG will comprise half of the Board of the joint venture and will bring to the venture government contracting experience. The joint venture plans to produce railcars on order for public authorities and communities to improve public transit, commuter and regional rail service.
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