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Nippon Sharyo loses rail contract

Nippon Sharyo in Rochelle has lost its contract to build double-decker rail cars for Illinois and California.

Sumitomo Corporation of Americas along with Siemens who are based in California will take over the contract that includes 137 rail cars in which 88 will go the the Illinois Department of Transportation.

The project involves single level rail cars.

Nippon Sharyo has had trouble with the project since 2015 meeting safety test standards. The problem resulted in layoffs at the plant during the past 2 years.

The contract going to the California companies was worth 371 million dollars.

Nippon Sharyo opened their facility in Rochelle in 2012. City officials have said that they plan to remain in Rochelle for at least the next 2 years.

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