If Columbus Castings folds, rail-car makers would suffer

April 23, 2016

By Dan Gearino, The Columbus Dispatch

A shutdown at Columbus Castings would send ripples through the U.S. rail industry, forcing rail-car manufacturers to scramble for new parts suppliers in a market with few options, according to industry sources.Website Insert Call Me State DOTs copy

Meanwhile, analysts say the rail downturn that is causing big problems for the company is likely to continue at least into winter, leaving little hope of a quick turnaround.

The upshot: Rail companies have a vital interest in the survival of Columbus Castings but are contributing to its demise by slashing their spending on new parts.

“It is a definite, definite problem” if Columbus Castings can no longer fill orders, said Jim Coston, chairman of Corridor Capital, a Chicago company that helps to finance equipment purchases for passenger rail. “This would require builders and sponsors to look elsewhere, probably overseas.”

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