American Railcar Industries (ARI) announced that Ohio Castings will restart production at its railcar castings facility in Alliance, Ohio. Ohio Castings was temporarily idled in June 2009 due to weak demand in the new railcar market. Over the past several months, ARI has seen an increase in new railcar quotes, orders and backlog. In response to the increase in demand, Ohio Castings is expected to begin shipping castings during the third quarter of 2011. ARI is a one-third owner of Ohio Castings.
Ohio Castings provides ARI and the other partners access to railcar castings at a favorable price. Railcar castings, which historically have been subject to supply constraints, are a critical railcar component. The steel foundry produces castings for freight-car side frames, bolsters, couplers and yokes.