Vertex Railcar Corporation is making additional significant capital investments to expand its production capabilities in order to produce new types of railcars with greater market demand.
The first cars Vertex produced were covered hoppers used to transport frac sand. Due to depressed oil prices, new drilling activity is being delayed across the U.S., thus reducing the need for frac sand and the demand for sand hopper cars to transport it.
In response to declining demand, Vertex is shifting production focus from sand hoppers to pursue new opportunities within the freight car market, including aggregate and food service hoppers. The company will also produce food-grade tank cars in addition to its planned crude oil tankers.
“We are committed to the railcar market and are willing to invest in our business, our factory and our personnel in order to take advantage of market opportunities as they are presented,” said Vertex CEO Donald Croteau.
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