There has been a recent slowdown of orders for covered hoppers and railcar builders are managing production rates to focus on fulfilling orders in the existing backlog. A recent report by the Chemical Weekly indicated that significant new ethanol capacity in the form of new plants will be coming online between 2013 and 2017. These new plants are expected to add over 20 billion pounds of capacity to the market. We expect this will generate new orders for classic covered hopper railcars as the industry currently has a shortage of this railcar type.ARI’s backlog continues to remain strong with 6,800 railcars on order for both sale and lease at the end of June. We received orders for approximately 2,810 railcars during the second quarter of 2012. At the end of June, we had approximately 1,620 railcars in our backlog to be manufactured for our lease customers.
American Railcar Industries' CEO Discusses Q2 2012 Results - Earnings Call Transcript
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