L.A. Metro and Kinkisharyo Deliver on Jobs and Economic Development Promises
Since beginning operations in Palmdale working on a contract for the Los Angeles County Metropolitan Transportation Authority (Metro) to produce a new generation of light rail vehicles (LRV), Kinkisharyo International has added 404 new jobs with a total expenditure of nearly $49 million to the north L. A. County economy, Metro announced today.
The newest LRV, the model P-3010, is assembled at Kinkisharyo’s facility in Palmdale in northern Los Angeles County and is designed to be used across the Metro Rail system.
“Kinkisharyo has spent about $10 million more on wages and benefits than it committed to,” said Metro Chair John Fasana. “That’s very helpful to our region’s workers and local economy.”
The first workers were hired in Palmdale in October 2013 and began assembling car shells in June 2014. The company has hired 404 workers in Palmdale and brought in 146 additional subcontractors to support Metro’s contract. The minimum wage earned at the facility is $17 per hour with an average wage of $21 per hour.
“We are easing congestion by building out our transportation system — and building our economy with good local jobs," said Los Angeles Mayor and Metro First Vice Chair Eric Garcetti. "Kinkisharyo has been an outstanding partner in putting people to work, and bringing top-of-the-line rail cars to our region. This success shows what's possible when business, government, and labor work together.”
Metro initially committed to purchase 78 LRVs and subsequently exercised four options for an additional 157 of the smooth and quiet-riding P-3010 vehicles. The options triggered a provision requiring Kinkisharyo to expand its facility from assembling the rail cars to partial manufacturing of the car shells — work that had been previously done exclusively in Japan.
"Kinkisharyo has created jobs for local workers, and is a vital component in our effort to position the County and the Antelope Valley as the location of choice for transit vehicle manufacturing and increased domestic and foreign investment," said Los Angeles County Supervisor and Metro Board member Michael D. Antonovich.
“Expanding our order of rail cars has translated into jobs for local workers in the Antelope Valley,” said Metro CEO Phillip Washington. “The facility in Palmdale includes tasks that allow workers to build skills they can use as a stepping stone for their future careers.”
Kinkisharyo has been delivering four LRVs monthly with a total of 32 in service currently on the Metro Gold and Expo Lines. The new cars delivered in the future will eventually be used on Crenshaw/LAX Line, due for completion in 2019.
“Our commitment to Metro from day one has been to produce high quality light rail cars on time, while providing excellent manufacturing jobs in Los Angeles County,” said Akiyoshi Oba, president of Kinkisharyo International, LLC. “We very proud of our performance in all these areas, and look forward to remaining a partner with Metro for many years.”
