MEXICO: As part of its response to the effects of the coronavirus pandemic, The Greenbrier Companies has amended its 50:50 joint venture agreement with Grupo Industrial Monclova, the manufacturing partner at the Greenbrier GIMSA wagon plant in Monclova, Mexico.
Both partners will receive additional revenue and dividends for a 12-month period, based on Greenbrier GIMSA revenue beginning March 1 2020. Greenbrier said this would ensure Greenbrier GIMSA ‘continues as a North American leader in freight railcar manufacturing’.
The change forms part of measures to increase Greenbrier’s cash and borrowing availability from US$620m to US$1bn.
‘Greenbrier is successfully executing the dual priorities of protecting the safety and health of employees and preserving the economic well-being of our enterprise in this challenging environment’, said Chairman & CEO William A Furman on May 13. ‘We continue to improve our financial liquidity, including the temporary restructuring of a key partnership at our railcar manufacturing joint venture in Mexico in a manner beneficial to both partners.’
Greenbrier had increased borrowing capacity and liquidity by almost US$200m by end of its Q2 on February 29, and was reducinge operating expenses, capital outflows and selling, administrative and non-essential expenses.