Nippon Sharyo to close US plant

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Nippon leaving USA

Postby east point » Fri Aug 10, 2018 8:53 pm

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Re: Nippon leaving USA

Postby Backshophoss » Fri Aug 10, 2018 9:20 pm

This seems to be a drastic step after the Crush Test failure.
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Re: Nippon leaving USA

Postby de402 » Fri Aug 10, 2018 9:49 pm

From the article
No production has taken place at Rochelle since October 2017, although staff has remained on the payroll. The 230,000m2 site had the capacity to assemble 120 double-deck coaches a year but has built just 220 vehicles during its six-year existence.


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Re: Nippon leaving USA

Postby R36 Combine Coach » Fri Aug 10, 2018 9:53 pm

The South Shore and MARC single level cars have held up well and made it past 30 years, though. I could see CRRC buying Rochelle (as it has the capability for stainless steel fabrication). (ACF and Mr. Icahn, are you listening, this could be your chance to reenter the passenger equipment market with a full "made in USA" assembly plant?)
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Re: Nippon leaving USA

Postby bretton88 » Sat Aug 11, 2018 9:09 am

METRA not coming through with promised fleet purchases was probably the last nail in the coffin, as NS would have been the favorite for new gallery cars.
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Re: Nippon leaving USA

Postby bdawe » Sat Aug 11, 2018 10:00 am

Well, that leaves the SMART/UPX DMUs pretty high-and-dry too
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Re: Nippon leaving USA

Postby gokeefe » Sat Aug 11, 2018 10:16 am

My money would be on CRRC, however I wouldn't be surprised to see this facility sold to another Japanese firm. They may not want to give CRRC an opening to take anymore than they already have. Keeping it Japanese also leaves open the possibility for "informal" means of consideration later on.

ACF doesn't have a working design or even a prototype.

I'm a little surprised that NS is giving up as opposed to holding out for new orders. Could be related to business conditions back home and the desire to cash out on this facility.
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Re: Nippon leaving USA

Postby Nasadowsk » Sat Aug 11, 2018 10:47 am

Looks like it's a simple business decision:

http://www.asahi.com/ajw/articles/AJ201808080007.html

Money dumped in, nothing coming back.
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Re: Nippon leaving USA

Postby gokeefe » Sat Aug 11, 2018 11:07 am

Anyone back in Japan reading between the lines will read, "Its test trains for the high-speed service failed to meet standards for strength in summer 2015.", and shake their heads.

This project failed due to bad engineering plain and simple. NS knows it and they were given plenty of time to rectify the problem. The rest of the article is just filler.
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Nippon Sharyo to close US plant

Postby STrRedWolf » Sat Aug 11, 2018 1:39 pm

https://m.railjournal.com/index.php/nor ... plant.html

NIPPON Sharyo announced on July 24 that its US subsidiary will close its rolling stock assembly plant in Rochelle, Illinois, at the end of this month due to a lack of orders...

No production has taken place at Rochelle since October 2017, although staff have remained on the payroll. The 230,000m2 site had capacity to assemble 120 double-deck coaches a year, but has built just 220 vehicles during its six-year existence.
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Re: Nippon leaving USA

Postby STrRedWolf » Sat Aug 11, 2018 1:40 pm

More info on it's Manufacturer subforum here. Follow the thread
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Re: Nippon leaving USA

Postby mtuandrew » Sun Aug 12, 2018 12:59 pm

The trade wars can’t help, and I have a feeling N-S has some corporate/finance issues that led to them exiting the North American market too.

Also, Icahn would sooner sell out to CRRC than allow ACF to renter the passenger car business. Not saying it wouldn’t be cool as the first American carbuilder since Morrison Knudsen went out, just utterly unlikely.
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Re: Nippon Sharyo to close US plant

Postby gokeefe » Sun Aug 12, 2018 2:40 pm

One of the linked Japanese articles indicated the sub-contracted truck manufacturer had gone bankrupt. Who was that?
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Re: Nippon leaving USA

Postby R36 Combine Coach » Sun Aug 12, 2018 6:23 pm

mtuandrew wrote:Also, Icahn would sooner sell out to CRRC than allow ACF to renter the passenger car business. Not saying it wouldn’t be cool as the first American carbuilder since Morrison Knudsen went out, just utterly unlikely.
MK wasn't a true American domestic carbuilder, assembled in Hornell with shells from Brazil (CTA 3200s and MNCR/ConnDOT M-6). MK did build the Viewliner sleepers (including shells) at the Pullman works in South Chicago (arguably the last Pullman stainless cars).
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Re: Nippon leaving USA

Postby BandA » Sun Aug 12, 2018 11:16 pm

Does Siemens need more capacity? CRRC would only need it if the sanctions make their Chinese shells uneconomic.
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