After entering a market that generates billions in revenue globally, workers at a startup rail car manufacturing venture began crafting the company’s first products in Wilmington: hopper rail cars.
As of Dec. 3, Vertex Railcar Corp. employed 189 people and expect to hire more as more orders come in. The rail car manufacturer came to the city in November 2014 as Vertex Rail Technologies, described in an announcement at the time by Gov. Pat McCrory as a Massachusetts company that planned to hire more than 1,300 people to make new, safer rail cars for the transportation of solid material and oil.
Since then, Vertex Rail Technologies changed its name to Vertex Railcar Corp. after entering into a joint partnership with a private equity partner and a Chinese rail car manufacturer.
The company then received a planned visit from the Association of American Railroads to produce hopper cars earlier this year.
“AAR representatives visited Vertex in late October to conduct audits for two certifications–one for facility certification and one for car builder certification,” wrote Foster Sayers III, general counsel, government liaison and public relations manager for Vertex Railcar Corp, in a November email.
He explained that facility certification–the M-1003 Specification for Quality Assurance–is required for all suppliers to the rail industry. “Following the audit, Vertex was recommended for certification approval. Approval for M1003 certification indicates that Vertex has the appropriate quality management system in place to mass-produce quality railcars,” Sayers wrote.
He said all manufacturers of freight cars must also receive certification to build cars–the S2034 Car Builder Certification.
“This certification focuses on construction processes and practices. Following the audit, Vertex was recommended for conditional certification approval, pending minor tweaks. Vertex has already addressed these and is awaiting issuance of the certificate,” Sayers wrote in November. “Vertex is approved to proceed with mass production of freight cars at its Wilmington facility, and expects both certificates to be issued by the end of the year.”
Vertex divided its plans into phases after Vertex entered into a joint venture with a private equity partner, Majestic Legend Holdings Ltd., and China Southern Railway, which merged with China Northern Railway to become China Railway Rolling Stock Corp. (CRRC) during the summer. In Phase 1, Sayers said, Vertex employees had been working to fill a $25 million order for 300 hopper cars.
“To get an operation up and running like this is no simple task, and it’s a tremendous effort that goes into it,” Sayers said of the company as a whole.
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