UTLX Manufacturing is cutting production by about 25% at its Louisiana manufacturing plant.
Production at the plant, located in Alexandria, will also affect Union Tank Car Company’s tank car component facility in Sheldon, Texas. The company’s workforce in both locations will be reduced to levels needed to support the lower production rate. The change is expected to take effect in July.
UTLX Manufacturing President Jeremy DeLacerda blamed the move on current market conditions and the industry-wide demand outlook for new railroad tank cars.
“I regret the impact of this necessary action on our dedicated employees and the communities we call home,” DeLacerda said in a statement. “When economic conditions improve and tank car demand rebounds, I look forward to increasing employment levels accordingly.”
UTLX Manufacturing, a subsidiary of Union Tank Car Company, produces railcars for Union Tank Car and its Canadian affiliate, Procor, as well as shipper-owners and tank car lessors.
Built in 2006, UTLX’s Alexandria plant is a 122-acre tank car manufacturing facility. Leveraging the in-line plant design and unique manufacturing processes, this facility produces standard tank car types in high volume.
In addition to standard tank car manufacturing, the facility also performs steel normalization, interior coating application and cold form head processing.