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Rail News Home Rail Industry Trends

4/24/2006



Rail News: Rail Industry Trends

American Railcar Industries' tornado-ravaged Arkansas plant to resume production in August


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After assessing storm damage last week at their Marmaduke, Ark., tank-car manufacturing plant, American Railcar Industries Inc. (ARI) officials estimate the facility will resume production in late August.

On April 2, a tornado destroyed the plant’s inbound material processing area and a nearly completed building that would have received inbound materials and stored inventory. The storm also wrecked material handling, plate steel blasting and sheet rolling equipment.

Crews are completing debris clean-up operations and beginning reconstruction work. So far, no customers have canceled car orders, ARI said.

Insurance policies will cover substantially all storm damage costs; the car builder’s carrier already has made an initial payment of $7.5 million, according to a prepared statement.

ARI builds covered hoppers and tank cars, repairs and refurbishes freight cars, provides fleet management services, and designs and manufactures rail-car and industrial components.