American Railcar Eyes Joint-Venture with Amtek

American Railcar Industries Inc. and India-based automotive components producer Amtek Auto Ltd. have agreed to form a joint venture to manufacture, supply, and sell freight railcars and their components in India and other Southeast Asian countries. The would-be partners state that they expect each of them will control have of the venture (or ventures), and contribute half of the start-up costs. American Railcar Industries produces covered hopper and tank railcars, and repairs and refurbishes railcars. It also provides fleet management services and designs and manufactures certain railcar and industrial components used in manufacturing railcars. Amtek produces automotive components and assemblies, from plants in North America, Europe, and Asia. Its manufacturing capabilities includes ferrous and nonferrous castings, forgings, ring gears, and other complex assemblies for the automotive supply chain. Its Amtek Ring Gear division operates plants in Kellog, IA, and Stanberry, MO. The partners say they are developing business plans for their joint venture, and plant site selection and a definitive agreement should be completed in the first half of this year. They anticipate that construction of the manufacturing facility could begin in the second half of 2008, and that railcar production in India could begin in 2009.