National Industries Inc., the parent company of National Steel Car Limited (NSC), a leading North American rail car manufacturer since 1912, recently announced that its newly formed subsidiary, National Alabama Corp., will build a new manufacturing facility in The Shoals Region of northwest Alabama. Construction of the manufacturing unit is scheduled to begin over the next few months with startup expected in early 2009.

National Steel Car Limited and National Alabama Corp. are wholly owned subsidiaries of National Industries Inc.

"Together with National Steel Car's Hamilton facility, our new Alabama manufacturing facility will further reinforce our position as one of the largest and most modern manufacturers in the North American railcar industry," said Chairman and CEO, Gregory Aziz.

National Steel Car is currently the largest single site manufacturing facility for freight railway cars in North America, and is capable of producing 15,000 new freight railroad cars per year.

The combined operations of National Steel Car and National Alabama will increase National's product offerings to the North American market. National Steel Car has continued to invest heavily in modern technology and new plant over the past decade and the new Alabama operation will continue that focus, employing an engineered "Greenfield" high quality manufacturing process.

With the new facility operational in early 2009, National will have additional multi-product flexibility, as well as enhanced operating capacity, utilizing the strengths of both plants. This new investment will allow National to continue to extend its strong presence with its primary customer base in the U.S.

“We undertook a comprehensive assessment to determine the best possible North American site,” said Aziz. “As part of this process, our people worked closely with several jurisdictions. I cannot say enough about the support we received during this rigorous process by all participants. Ultimately, we had to make a very difficult decision.”

"We look forward to a long and beneficial partnership as a successful business and active community member in The Shoals Region. We are making a very long-term commitment to work with these communities as a responsible employer, to train and develop a large number of new associates, and to actively participate in programs that enhance the quality of life and community in this region."

Aziz emphasized that National's team has been working for nearly two years assessing process design, and optimal plant configuration solutions. The new single structure manufacturing facility is designed to provide low cost, flexible operation, with enhanced product throughput, resulting in exceptional quality for our customers.

While specific cost figures were not released, the investment is estimated to be in the $350 million range. When in full operation, annual capacity is expected to be in the 8,000 to 10,000-unit range providing new employment for 1800 people.

National Steel Car Limited was founded in Hamilton, Ontario, Canada, in 1912 to serve the growing Canadian railway industry. NSC has continued to make substantial investment in new facilities and technology at its Hamilton operations. Today National Steel Car is North America's leading, and one of the largest railway car manufacturers. Its Hamilton Ontario plant is the largest single site facility in North America with an annual capacity of 15,000 cars and a work force of approximately 2,500 people

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