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Indian Foundry, Michigan Steel to Market Railroad Castings

Jan. 20, 2012
Cast iron bogies produced in India for U.S. market

Michigan Steel, which produces carbon, low-alloy, and high-alloy steel castings weighing up to 3,000 lb at its foundry in Muskegon, MI, is the new joint-venture partner of an Indian foundry, Steelcast Ltd., aiming to supply cast-iron railroad bogies for the U.S. market. A “bogie” is the term for the assembly of frames, bolsters, and springs situated below a locomotive or railroad car. The venture will be called Steelcast LLC and will market bogies produced in India for U.S. rail lines.

Steelcast LLC’s products will be produced in India. The partners are waiting for process and product certification from the Assn. of American Railroads. Steelcast Ltd. is a foundry in western India, at Bhavnagar in the state of Gujarat, that produces a wide range of components and parts for heavy equipment and manufacturing processes.

Steelcast reportedly has invested almost $5 million to prepare the plant to produce the bogies. It has a current capacity of 17,000 metric tons/year of steel castings, but is being expanded to produce up to 24,000 metric tons/year by December. Steelcast chairman Chetan Tamboli said further expansion will raise capacity to 36,000 metric tons/year by March 2014.

Tamboli said the joint venture expects sales of almost $8 million, and forecasts five-year revenues of nearly $40 million.