Talgo, Inc. Announces Washington State TrainManufacturing Partner; Washington State and Amtrak Unveil Plans ForCascade Service To Begin In 1998.

OLYMPIA, Wash.--(BUSINESS WIRE)--March 19, 1997--Talgo Inc., a Washington-based subsidiary of Patentes Talgo SA of Madrid, Spain, today awarded a train manufacturing subcontract to Seattle-based Pacifica, an International Association of Machinists and Aerospace Workers' company.

Pacifica will assemble three new custom-built, European-style train sets, purchased by the Washington State Department of Transportation and Amtrak for operation in the Pacific Northwest Rail Corridor beginning summer 1998.

As part of the subcontract announcement, Talgo Inc. announced the initiative to build two additional trains (for a total of five) at the Washington site with plans to market the additional equipment in the U.S.

"More than 40 direct jobs will be created for the region and more than $5 million will be invested in U.S. components," said Gustavo Gonzalez executive vice president and CEO of Talgo Inc. in Bellevue, Wash. "Washington State has been an admirable friend and partner and we are excited about bringing our business here."

"This will be a first in the State of Washington and one of the very few in the country where the union has formulated a company to form a partnership with another company and we are very excited about the possibilities and the tremendous importance this will have on bringing family wage jobs to the state," said Washington Machinists Council President Larry Finneman.

The International Association of Machinist and Aerospace Workers started a company called Pacifica to bring family wage jobs for its members in the State of Washington. The company is structured around the Association's High Performance Work Organization program which is designed to have the employees involved in the operation of the company from the top down.

"This company is unique because its goal is to create family wage jobs for its workers, not the corporation. All of the profits from this company will be used to start other projects that will benefit working people and their families," added Finneman.

Gonzalez acknowledged that future U.S. orders for Talgo trains could further Washington state economic investment as the facility will already be in place.

"Talgo Inc.'s initiative to build additional train sets is not only a commitment to the future of passenger rail in the U.S., but also a valuable investment in the local economy," said Washington State Secretary of Transportation Sid Morrison.