New Flyer to invest US $28M to establish a bus and coach parts fabrication facility in Kentucky
ST. CLOUD, MN, Nov. 16, 2017 /CNW/ - (TSX: NFI) New Flyer of America Inc. ("New Flyer"), a U.S. subsidiary of New Flyer Industries Inc. ("NFI Group"), the largest transit bus and motor coach manufacturer and parts distributor in North America, announced today that it is investing approximately USD $28 million for capital equipment and building preparations to establish a new part fabrication facility in Shepherdsville, Kentucky.
The 300,000 square foot facility will fabricate parts for the manufacture of New Flyer transit buses, MCI motor coaches and spare parts for NFI Parts – all business units of the NFI Group. Production is expected to commence during the second quarter of 2018 and once fully operational by December 2019, the facility expects to employ up to 550 people.
"As we continue with our goal of designing, manufacturing and supporting the industry's best transit buses and motor coaches, we believe that owning and control of the fabrication of key parts of our supply chain (where we own the drawings and the intellectual property) are fundamental to our competitiveness and controlling overall cost, time, and quality," stated Paul Soubry, President and Chief Executive Officer of the NFI Group. "This new facility will build on our successful metal fabrication insourcing efforts over the past number of years, and most recently, our efforts to consolidate our fiberglass reinforced plastic (FRP) supply. Once fully operational the return on invested capital is expected to be accretive to the company's current performance levels."
The new facility, situated in Bullitt County, will be supported by tax incentives through the Kentucky Business Investment program. New Flyer will also receive resources from the Kentucky Skills Network.
"New Flyer's decision to locate in Kentucky further distinguishes the commonwealth as a top location for engineering and advanced manufacturing in the U.S.," said Kentucky Governor Bevin. "The significant number of jobs coming to Shepherdsville and surrounding communities through this investment will be a major economic driver for years to come. We thank New Flyer for selecting Kentucky and congratulate officials and residents of Bullitt County on this major announcement."
Wayne Joseph, President of New Flyer of America, commented that "after extensive research, we chose Kentucky due to its available workforce, lower operating costs, and central location relative to NFI Group's other U.S. manufacturing plants." The Shepherdsville facility will also provide additional U.S. content to assist in complying with the increased Buy America requirements under the 2015 FAST Act. Joseph further explained "targeted processes for this new facility include hose manufacture, injection molding and thermoforming plastics, metal fabrication and machining, powder coating, and electrical component manufacture – the majority of which is currently supplied by third parties."
NFI Group currently employs 176 people at Parts Distribution Centers (PDC) in Louisville and Hebron in Kentucky.
About NFI Group
NFI Group is the largest transit bus and motor coach manufacturer and parts distributor in North America, with 31 fabrication, manufacturing, distribution, and service centers across Canada and the U.S. employing over 5,800 team members.
It is North America's heavy-duty transit bus leader and offers the largest transit bus product line under the brand Xcelsior®, incorporating the broadest range of drive systems available, including: clean diesel, natural gas, diesel-electric hybrid, trolley-electric, and battery-electric. NFI Group actively supports over 44,000 heavy-duty transit buses (New Flyer, NABI, and Orion) currently in service, of which 6,400 are powered by electric and battery propulsion.
NFI Group is also North America's motor coach market leader offering the Motor Coach Industries Inc. (MCI) J-Series, the industry's best-selling intercity coach for 11 consecutive years, and the MCI D-Series, the industry's best-selling motor coach line in North American history. MCI is also the exclusive distributor of Daimler's Setra S 417 and S 407 motor coaches in the United States and Canada. MCI actively supports over 28,000 coaches currently in service.
NFI Group also operates North America's most comprehensive parts organization, NFI Parts™, providing parts, technical publications, training, and support for its OEM product lines (transit buses and motor coaches). All buses and coaches are also supported by an industry-leading comprehensive warranty, service, and support network.
Further information is available on NFI Group websites at www.newflyer.com and www.mcicoach.com. The common shares of the NFI Group are traded on the Toronto Stock Exchange under the symbol NFI.
Forward-Looking Statements
This press release may contain forward-looking statements relating to expected future events and financial and operating results of the NFI Group that involve risks and uncertainties, including the expected cost savings, synergies and the accretive effects of the transaction to revenue, earnings or cash flow of New Flyer. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including the ability to implement the operational changes necessary to achieve the intended cost savings and synergies and those risks and uncertainties discussed in the materials filed with the Canadian securities regulatory authorities and available on SEDAR at www.sedar.com. Due to the potential impact of these factors, NFI Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
SOURCE New Flyer of America Inc.
Jon Koffman, Investor Relations, Ph: 320-316-4964
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