US-based corporation Greenbrier plans to shutter its railcar manufacturing facility in Arad, western Romania.
American Group Greenbrier Closes Down Factory in Arad
In a troubling move affecting nearly 800 employees, Greenbieri, an American company, is shutting down its factory in Arad, Romania. This facility, known as Astra Rail Industries, is one of three factories operated by Greenbrier in the country.
The decision stems from a cocktail of troubles confronting the local market, which Greenbrier hinted at last year during employee protests. The company cites intensifying industry pressures, escalating operational costs compared to other factories, and logistical hurdles associated with the factory's age and urban environment as the main drivers behind this decision [1][3][5].
Greenbrier, however, reassures that it intends to keep the production operations alive at its Caracal and Drobeta Turnu Severin plants. Investments will flow into these facilities to support their long-term development, with existing orders being fulfilled from these locations. Logistics and procurement strategies will be tweaked as necessary [2][5].
"Greenbrier acknowledges Arad's rich history of railcar manufacturing and the diligence of its workforce. The company is fully invested in this process and will collaborate closely with unions and the local community to help affected employees during this transition. Aid will be offered to displaced workers through career counseling support and recognition of their years of dedicated service," the statement explains, referenced by Profit.ro [1].
Greenbrier's entry into Romania dates back to 2016 when Astra Rail Management, the owner of Astra Rail Industries in Arad, merged with the European division of The Greenbrier Companies for a transaction worth over 60 million euros. Since this merger, The Greenbrier Companies, a US-based manufacturer of railcars and barges, has taken over 75% of the shares of the new company, handing over approximately 60 million euros to Astra Rail Industries' owner in installments [6].
In 2023, Greenbrier reported nearly USD 4 billion in revenues. In Romania, it generated RON 1.2 billion in business and posted a net profit of RON 71.6 million, employing 2,246 individuals [6].
(Photo source: greenbrier-europe.com)
[1] Profit.ro[2] Romania Insider[3] Romania Today[5] Agerpres.ro[6] Bursa.ro
radu@our website
- Despite generating significant revenue for Greenbrier, the company's factory in Arad, Romania, is closing down, affecting nearly 800 employees.
- The decision to close the factory in Arad is attributed to numerous challenges in the local market, escalating operational costs, and logistical hurdles.
- Although Greenbrier is closing its factory in Arad, the company aims to continue production at its Caracal and Drobeta Turnu Severin plants, with investments to support their long-term development.
- Greenbrier acknowledges the efforts of its workforce in Arad and plans to collaborate with unions and the local community to help affected employees during the transition, offering aid through career counseling support and recognizing their years of service.
