Major Japanese train car manufacturer Nippon Sharyo Ltd. said Wednesday it will build a new components factory next to its assembly plant in the state of Illinois in the United States, aiming to start operations in April next year.
The move, in response to the U.S. government's demand for higher local production ratios, will enable Nippon Sharyo to operate an integrated system of production in the country, the company said, adding it will be the first such system for a Japanese train maker in the United States.
Investing around 5.2 billion yen, the company will begin construction of the components factory in the city of Rochelle, northern Illinois, in May.
The total site area will expand to 230,000 square meters from the current 140,000 and the manufacturer plans to employ 80 workers at the new factory.
Nippon Sharyo is aiming to deliver around 330 train cars to public railroads in North America by 2018.
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