CHICAGO (AP) — FreightCar America Inc. on Tuesday said it will close its manufacturing facility in Johnstown, Pa.
The railcar manufacturer said the move is in line with its strategy to optimize production at its low-cost plants and cut costs.
The company's Johnstown administrative offices are not included in the closure of the plant, which employs about 390 workers, the company said.
FreightCar officials said the Johnstown plant is a higher-cost facility compared with the company's other locations.
The company said it attempted to reach an agreement with the union representing the plant's workers that would have allowed it to continue to cost-effectively operate the facility, but was unsuccessful.
FreightCar said it expects to record a fourth-quarter restructuring and impairment charge of about $34.3 million related to the closure.
The company expects that the capacity at its other two other existing plants will be enough to meet its requirements for the next several years.
FreightCar shares fell 88 cents, or 2.5 percent, to $33.90 in aftermarket trading, after rising $1.28, or 3.8 percent, to $34.78 in the regular session.