Railpower Technologies Completes New Manufacturing Facility
October 8th, 2008 | by admin |Railpower Technologies Corp. (TSX: P), today reported that it will postpone the completion of the new assembly plant in Saint-Jean-sur-Richelieu, Quebec, which was initially planned for completion in the first quarter of 2009.
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The Company started the construction of the facility in June of 2008, and does not expect to restart it until new significant orders are secured.
“The measure aims at preserving cash due to slower sales than anticipated. Certain expected large orders have been delayed this year by customers due to the economic slowdown and other factors related to delayed governmental subsidies in the United States” said Mr. Mathieu, President and CEO of Railpower.
“To our knowledge, no significant orders have been awarded by the large Class I Railways to any of the low horsepower locomotives manufacturers In North America, during the year” added Mr. Mathieu.
The Company has also decided to put in place a cost reduction plan which includes, among other things, the elimination of certain employment positions in order to lower its costs and continue operations to meet current and future customers’ requirements. — www.cnxmarketlink.com