Friday, September 20, 2013
Kawasaki Heavy Wins NY Order For Commuter Rail Cars
TOKYO (Nikkei)--Kawasaki Heavy Industries Ltd. (7012) said Thursday that it has received a 25 billion yen order for 92 commuter rail cars from the U.S. state of New York.
Kawasaki Heavy also has first rights to an additional 584 rail cars that will be ordered by 2020, bringing the total potential value to 1.83 billion dollars, or around 183 billion yen.
The state's Metropolitan Transportation Authority will use the commuter rail cars for new routes in Manhattan scheduled to begin service in 2019 and to upgrade rail cars on existing routes.
Kawasaki Heavy will manufacture the rail cars from stainless steel at its factory in Lincoln, Nebraska, and then assemble and test them at a plant in Yonkers, New York.
It will begin delivering the rail cars in 2017 to the Long Island Rail Road and the Metro-North Railroad.
Kawasaki Heavy has now received orders for more than 4,000 commuter rail cars in the U.S., where fleets are aging and in urgent need of replacing.
The U.S. market accounted for roughly 30% of overall sales in the company's rolling stock business in fiscal 2012. Given the expected growth of this business in the U.S., Kawasaki Heavy expects sales in the division to soar 40% to 180 billion yen in fiscal 2015.
(The Nikkei, Sept. 20 morning edition)