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Siemens' Sacramento plant gets big order for light-rail cars
By Dale Kasler - dkasler@sacbee.com
Published 12:00 am PDT Thursday, May 15, 2008
Story appeared in BUSINESS section, Page D1
The Siemens light-rail assembly plant in Sacramento will announce the largest order in its 24-year history today, bringing new jobs at a time when the area's economy is struggling.
The $277 million contract calls for Siemens Transportation Systems Inc. to build 77 light-rail cars for Salt Lake City's transit system over four years.
Salt Lake's order surpasses Denver's purchase of 55 cars, for $184 million, in January 2007.
The new contract will require Siemens to increase employment from its current level of 550 workers, although it wasn't immediately clear by how many.
"There will be a ramp-up," said Siemens spokeswoman Xanthi Pinkerton.
Any jobs would be welcome news. The Sacramento area has been clobbered by the crash in the housing market and the overall weakening of the economy. Besides the downsizing in the construction and real estate sectors, significant layoffs have hit such Sacramento-area employers as Apple Inc., Intel Corp. and a furniture maker owned by Restoration Hardware.
Unemployment rose to 6.5 percent in March, the highest in 11 years. The April numbers are scheduled to be released Friday.
The Siemens plant, which has made cars for transit systems from Sacramento to Charlotte, N.C., has been on a growth curve the past two years. Employment has risen by 30 percent since it expanded its French Road factory in south Sacramento to assemble the car exteriors, or "shells."
Until then, the shells were made at a Siemens plant near Los Angles and shipped to Sacramento, where workers installed brakes and other components.
The contract marks the fourth time the Utah Transit Authority has ordered light-rail cars from Siemens Sacramento. It includes an option for an additional 180 cars.
The deal "demonstrates the confidence our customers have in Siemens," said company President Oliver Hauck in a press release.
John Inglish, general manager of the Utah agency, said the additional rail cars are needed to alleviate traffic congestion.
A subsidiary of German industrial conglomerate Siemens AG, the Sacramento unit calls itself the leading light-rail car maker in North America. It controls about one-third of the market.
About the writer:
- Call The Bee's Dale Kasler, (916) 321-1066.
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