Western Romania: US group Greenbrier to close railcar manufacturing plant in Arad
The American group Greenbrier is closing its factory in Arad, which employs nearly 800 people. The group operates three factories in Romania, including Astra Rail Industries in Arad, a railcar manufacturer.
The decision comes after "difficult and accelerated challenges on the local market,” first made explicit last year, when employees protested.
The American company now states that this decision to halt activity was influenced by several factors, including increasing pressures from the industry, rising operational costs compared to other factories, and logistical constraints related to the age of the facility and the urban environment, the company says.
Greenbrier Romania assures that it will continue to consolidate its production operations at the Caracal and Drobeta Turnu Severin plants. The company plans to continue investing in these facilities to support their long-term development. Existing orders will be fulfilled from these locations, and procurement and logistics strategies will be adjusted as needed.
"Greenbrier deeply values Arad's long history of railcar manufacturing and the dedication of its workforce. The company is fully committed to this process and will work closely with unions and the local community to support affected employees during this transition. Every effort will be made to assist impacted colleagues, through both career counseling support and recognition of the contributions of all colleagues whose work has been essential over the years," the statement adds, cited by Profit.ro.
In 2016, Astra Rail Management, the owner of the railcar manufacturer Astra Rail Industries in Arad, merged with the European division of the American group The Greenbrier Companies, in a transaction valued at over 60 million euros. Following this operation, the American manufacturer of railcars and barges, The Greenbrier Companies, took over 75% of the shares of the new company, paying, in installments, over EUR 60 million to the owner of Astra Rail Industries. The new company was named Greenbrier-Astra Rail.
In 2023, the American group had revenues of nearly USD 4 billion. In Romania, it had business worth RON 1.2 billion and a net profit of RON 71.6 million, with 2,246 employees.
(Photo source: greenbrier-europe.com)
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