Trinity Industries announces strategic railcar maintenance network expansion
Trinity Industries announced that its wholly owned subsidiary, TrinityRail Maintenance Services has agreed to purchase land for the construction of a new railcar maintenance services facility in Shell Rock, Iowa. TRMS has selected the 230-acre site for its expansion, which is expected to employ over 250 people following Trinity's planned capital investment of approximately $60M in the Butler County, Iowa, community. Upon completion, the new facility will provide a full range of railcar services, including repairs and maintenance, coatings, cleaning, inspections, and testing. The site's co-location with the Iowa Northern Railroad and optimal access to the Class-1 railroad network, including strategic access to the upper Midwest, were significant factors in Trinity's decision to build a new railcar maintenance facility in Shell Rock. The company anticipates the new facility to be operational by the end of 2020 and to be accretive to consolidated financial results by the end of 2021, including anticipated start-up costs. The development is not expected to impact the company's 2019 earnings per share guidance. Approximately half of the investment for the new facility is expected to be incurred in 2019 and was not included in the company's prior 2019 guidance for capital expenditures.