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Yesterday, Global Railway Industries Ltd. announced it acquired YSD Industries Inc.'s machinery, equipment, land, buildings, patents, licenses, computer hardware and software, engineering designs and existing order backlog for $2 million. Global Railway — which reached a sales agreement with YSD last month — purchased the assets with existing cash reserves.

Founded in 1924, YSD supplies rail-car doors and sides, hopper car outlet gates, box-car roofs, auto-rack side screens and roofs, and stamped grating products.

After a three-year decline, the North American rail-car market is growing, with orders expected to reach 40,000 this year compared with 18,000 in 2003. Because YSD generated about $45 million in annual revenue during market peaks, the supplier has growth potential, Global Railway officials believe.

"YSD has a very competitive product line and a skilled labor force," said Global Railway President and Chief Executive Officer Mike Kohut in a prepared statement. "Given that Global has been selling rail-car doors into the Canadian market through its subsidiary Prime Railway Services, we expect to see synergies emerge between the two divisions as the integration of YSD is completed."