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Nippon Sharyo Meets “100% Buy America” Requirement

• Nippon Sharyo Manufacturing, LLC, a wholly-owned subsidiary of Nippon Sharyo U.S.A., Inc., held an opening ceremony on July 30 for their expanded production facility, Shop 3 at Rochelle, Illinois. About 200 guests were in attendance, including dignitaries from the Federal Government, Illinois, California, and railcar industry.

• Nippon Sharyo invested $100 million to build the new facility to comply with “100% Buy America” requirement and produce mainly railcar bodies by using locally sourced products and services at Shop 3. The company opened Shops 1 and 2 two years ago to assemble railcars for METRA and other customers. Completion of Shop 3 will help it become more competitive in the U.S. passenger railcar market.

• Nippon Sharyo won the bid for the contract for 130 railcars with an option for an additional 300 in November, 2012 from the California Department of Transportation (Caltrans), and the Illinois Department of Transportation (IDOT), which was funded by the Federal Railroad Administration (FRA).
• According to a release from Governor Pat Quinn’s office, Nippon Sharyo’s bid of $352 million for 130 railcars came in well below the procurement estimates. Of the 130 bi-level railcars, 88 will go to Illinois and 42 to California. These cars are a mixture of coach cars, café cars, and cab cars that enable an engineer to run a train even if the locomotive is at the rear of the train.

• Nippon Sharyo is going to have more orders. According to the release, IDOT and Caltrans will soon finalize an additional option order with the company that will enable Illinois to add another 34 cars, for a total of 122 cars headed to the Midwest. Caltrans will buy an additional 11 cars.
• The 122 railcars will allow all existing Midwestern routes to be equipped with new railcars, including service to St. Louis, Milwaukee, Carbondale, Quincy, Chicago-Pontiac, Chicago-Grand Rapids, Chicago-Port Huron, and St. Louis-Kansas City. In addition, the new Moline and Rockford corridors will also be outfitted with new equipment.

• At the opening ceremony, Governor Pat Quinn remembered that the site of Nippon Sharyo in Rochelle was just a prairie until the company had a groundbreaking ceremony for building its first assembly facility five years ago.
• Nippon Sharyo has created more than 400 jobs in its facility and going to hire 90 people for Shop 3. Quinn said, “I personally want to thank Nippon Sharyo for their commitment to our State. We have been able to grow with the company for the last five years. I think that it’s a testament for people of good faith to come together, and work together for the common good. In Illinois, over 500 jobs have been created.”
• Quinn also said, “I personally want to thank Mr. Ikushima, Chairman of Nippon Sharyo, for your commitment to our State.” He mentioned about the Japan-Midwest U.S. Association, which has been held in the Midwest and Japan alternatively for more than 40 years, and said that he had met Ikushima on several occasions. He said, “It is so important that we welcome investment from our friends and colleagues in Japan to come here and create jobs.”
• Quinn also acknowledged the presence of people saying, “We’ve worked on jobs while working together on education and culture. We celebrate the fact such a strong friendship exists between the people of Illinois, the people of America, and the people of Japan.”

• Masaharu Yoshida, Consul General of Japan, congratulated Nippon Sharyo’s expansion and successful business and celebrated strong business relationship and friendship between the two countries.

• Nippon Sharyo Chairman Katsuyuki Ikushima said, “We will now be able to fabricate, weld and assemble parts for our car body shells right here. From start to finish our rail cars will be made in the U.S. for use in the U.S. I hope we will become the top passenger railcar builder in North America.”

• Akira “Kevin” Koyasu, President and CEO of Nippon Sharyo U.S.A and Nippon Sharyo Manufacturing made a toast for the successful expansion of the U.S. passenger rail car business, and to the State of Illinois, State of California, FRA, and citizens of Rochelle.

• Chairman Ikushima answered Chicago Shimpo’s interview regarding the quick expansion of the business and facilities.
• Ikushima said that the company put forward the building schedule of Shop 3 to meet 100% Buy America requirement. Complying with it was not easy task because the company had to clear every material provider, such as cutting and bending.
• He also said, “The expansion was… I started our business in the U.S. about 35 years ago. At that time our senior associates were talking of their dream that was building our own factory and doing business with the U.S. Eventually, I came to realize it with the cooperation of others.”

• The full story is available in the Chicago Shimpo’s 2014, August 22nd is

A tape cutting ceremony with dignitaries at Nippon Sharyo
Manufacturing's Shop 3

Governor Pat Quinn

Chairman Katsuyuki Ikushima

President Kevin Koyasu

Chet Olswon, Mayor of the City of Rochelle, expresses his gratitude and presents a plaque to Chairman Ikusima and President Koyasu for building factories and creating jobs in Rochelle.

Governor Pat Quinn and Chairman Katsuyuki Ikushima watch President Kevin Koyasu (front), who paints right eyeball of daruma doll that symbolizes the completion of Shop 3.