NIPPON SHARYO TO BUILD $54M ADDITIONAL FACILITY IN ILLINOIS

(The following is a reformatted version of a press release
issued by the Office of the Governor of Illinois and received
via e-mail. The release was confirmed by the sender.) 
April 30, 2013 
Governor Quinn Announces Expansion of High-Speed Railcar Factory
in Rochelle 
Nippon Sharyo Will Build $54 Million Additional Facility and
Create 80 Permanent Local Jobs, 200 Construction Jobs 
ROCHELLE - Governor Pat Quinn today was joined by U.S.
Transportation Secretary Ray LaHood, Federal Railroad
Administration Administrator Joseph Szabo and Nippon Sharyo Ltd.
Chairman Katsuyuki Ikushima to announce the expansion of the
Nippon Sharyo passenger railcar factory in Rochelle. The $54
million expansion will create about 80 permanent local jobs and
about 200 construction jobs, and will help Nippon Sharyo fulfill
railcar orders from Illinois’ METRA, California’s CalTrans and
other transportation systems. Governor Quinn personally
recruited Nippon Sharyo to Illinois, and today’s announcement is
part of the governor’s agenda to drive Illinois’ economy forward
and create jobs. 
“Nippon Sharyo came to Illinois because of our commitment to
high-speed rail, strong transportation network and central
location, all of which make our state the ideal choice for
growing global companies,” Governor Quinn said. “That commitment
continues to drive growth today as Nippon Sharyo expands their
facility in Rochelle, which will create even more jobs, and
strengthen our local economic recovery.” 
Nippon Sharyo will expand its Rochelle plant by adding a new
building for metal fabrication and machining work. They will
start construction this spring, and plan to be in operation by
spring 2014. The new 327,360-square-foot building, which will be
located to the west of the existing building, will allow for a
68 percent expansion of the railcar factory, and an additional
80 jobs on top of the 250 the company created at the current
factory. The current and expanded facilities meet the Federal
Railroad Administration’s “Made in America” requirements to
compete for contracts as America builds its high-speed rail
network. 
“Today’s announcement means more manufacturing jobs for
Illinois, and is proof that our Buy America program, requiring
every rail component to be built in the U.S. by American
workers, is making a difference,” U.S. Transportation Secretary
Ray LaHood said. “We hope more companies will follow Nippon
Sharyo’s lead expanding U.S. factories and hiring American
workers to build the equipment we need for improved passenger
rail, ensuring that the investments we make improve both the
country’s transportation infrastructure and economy.” 
METRA is currently purchasing 160 new rail cars over the next
five years with $585 million provided through Governor Quinn’s
Illinois Jobs Now! capital program. This new expansion comes as
the result of high demand for the company’s passenger-friendly
rail cars that are designed to operate at speeds up to 125 miles
per hour in all weather extremes. Nippon was awarded a $352
million Federal Railroad Administration contract to build 130
intercity passenger rail cars that will be delivered starting in
2015 for Illinois, Missouri, Michigan and California. 
“We have hired great U.S. workers to be our mechanical
assemblers, electrical assemblers and quality assurance
inspectors. We now expect to find more great workers in the
fields of welding and machining,” Nippon Sharyo Ltd. Chairman
Katsuyuki Ikushima said. “This new shop will give our plant full
circle production. Material, components and workers will be from
the U.S. The entire train will be made right here, and the
finished product will be used in the U.S.” 
Governor Quinn worked to bring Nippon Sharyo to Illinois, and
support the expansion of its Rochelle operations. As previously
announced, the state’s Department of Commerce and Economic
Development is providing a modest investment including Economic
Development for a Growing Economy (EDGE) tax credits over ten
years and Employer Training Investment Program funds to enhance
the company’s workforce skills. The city of Rochelle received
Community Development Assistance Program (CDAP) funds for water
and sewer service to the factory, and has applied for additional
CDAP funds to construct a dedicated electrical feeder line to
supply power to the new factory building. 
The Illinois Department of Transportation also provided $5.5
million for a “rail spur” to connect the BNSF Railway main line
to the new factory, for which Nippon-Sharyo agreed to create 250
jobs and invest at least $35 million. The company has exceeded
that agreement already, investing $50 million, with an
additional $54 million to be invested for the factory expansion. 
The Federal Railroad Administration has named Illinois to lead
the multi-state procurement of next-generation locomotives for
high-speed rail. The Illinois Department of Transportation is
leading the effort to procure at least 35 next-generation diesel
locomotives and 130 bi-level railcars for high-speed passenger
trains on behalf of five states - Illinois, California,
Michigan, Missouri and Washington. 
Under Governor Quinn’s leadership, Illinois is working to offer
110-mile-per-hour passenger rail service on at least 75 percent
of the Chicago to St. Louis corridor, the segment from Dwight to
Alton, by the end of 2015, and the new railcars are the key to
achieving that goal. Illinois is working with the state of
Michigan to establish 110-mph service from Chicago to Detroit as
the next Midwest segment targeted to run at higher speeds.
Illinois helps fund 28 Amtrak trains serving four corridors
including those from Chicago to Milwaukee and St. Louis. The
partnership with Amtrak has led to a steady increase in
ridership in recent years. The state-supported corridors
together carried a record 1.8 million passengers last year.
Ridership growth in Illinois has been exceptional, up more than
92 percent overall since 2006, and up on the Chicago to St.
Louis corridor by 224 percent. 
Contact
Press Line: (312) 814-3158
Brooke Anderson Brooke.Anderson@illinois.gov
Grant Klinzman Grant.Klinzman@illinois.gov 
(sgp) NY 
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