Vertex responds after 55 members of Congress call for investigation
WILMINGTON, NC (WWAY) — A spokesman for Vertex Railcar Corporation is speaking out about a letter signed by 55 members of Congress asking for an investigation on the company.
The letter requests the committee on Foreign Investment in the United States to thoroughly investigate the pending transfer of ownership in the Vertex Railcar Corporation involving the China Railroad Rolling Stock Corporation (CRRC) and Majestic Legend Holdings.
Vertex spokesman Foster Sayers said they are aware of the letter. Congressman Walter Jones signed it.
“The letter is very misguided and we are disappointed that instead of helping put people to work, Washington is at work trying to slow job growth,” Sayers said.
The letter said CRRC is a Chinese state-owned enterprise and the largest railcar manufacturer in the world. It said the company is the product of a 2014 merger between China South Locomotive & Rolling Stock Corporation Limited and China North Locomotive and Rolling Stock Industry Corporation, China’s two previous rolling stock conglomerates. Members of Congress said this merger was in part designed to reduce overseas competition between the two entities. CRRC is four times larger than the entire U.S. rail manufacturing sector.
“Both DeFazio and Forbes, the sponsors of the letters, represent competitors operating within their respective constituencies,” Sayers said. “We believe this letter is a direct result of railcar lobbyists of our competitors attempting to manipulate the system to stifle competition. Vertex is a fast growing US company that is trying to break into a highly competitive industry. Vertex Railcar Corporation remains committed to its goal to create jobs and economic opportunity for Wilmington and the state of North Carolina.
The letter said American railcar manufacturers and its associated industries, such as steel, are now competing against the resources of the world’s second largest economy.
“Vertex is proactively reaching out to the Treasury Department, among others, to provide an introduction to Vertex and address the inaccuracies contained in the letter,” Sayers said. “Infrastructure improvement projects and equipment upgrades are continuing in earnest at our Wilmington facility.”
The letter also said the January 17 statement of John Carli, Assistant Attorney General for National security at the Justice Department, that China’s cybercrimes constitute a threat to national security left them concerned that critical rail infrastructure and the sensitive cargo that it carries will become increasingly vulnerable to hackers as the proliferation of Chinese state investment continues without adequate scrutiny.
Finally, the members of Congress request the committee on Foreign Investment to fully examine all details of Vertex.
“To ensure that the domestic rail industry is able to continue supporting our country’s economy and security,” the letter said.
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