Major train car maker Nippon Sharyo Ltd. said Wednesday it will build a new components factory next to its assembly plant in Illinois, with an eye to starting operations in April 2014.
The move, in response to a U.S. demand for higher local production ratios, will allow Nippon Sharyo to operate an integrated production system, it said, adding it will be the first set up by a Japanese train maker in the U.S.
The company will begin building the factory in Rochelle in May with an investment of around ¥5.2 billion. The site's total area will expand to 230,000 sq. meters from the 140,000, and employ 80 workers.
Nippon Sharyo is aiming to deliver around 330 train cars to railroads in North America by 2018.