Joe McNeely, president and chief executive officer for Chicago-based FreightCar, said the plant will have capacity to build 6,000 to 8,000 rail cars per year when fully operational by the second quarter of 2015.

McNeely said the Barton plant and its employees are bringing a successful combination to FreightCar.

"The area has a good reputation of providing a good workforce," he said.

FreightCar already has approximately 500 employees at the plant, company officials said.

Navistar General Manager Ray Koopman said about 300 Navistar employees also occupy the plant.

That means the facility is closing in on the 1,000-employee mark.

Wages are competitive with those in the area, officials said.

McNeely said his company is committed to diversifying its rail car types, and the Barton plant is an ideal location for reaching that goal. In February 2013, the companies announced Navistar would sublease about 25 percent of the 2.2-million-square-foot facility to FreightCar. The expanded production will boost FreightCar's use to about one-third of the facility. The two companies combined will be using 75 to 80 percent of the plant's space.

FreightCar started production in June 2013 and rolled out its first rail car the next month. The company's Tuesday announcement means FreightCar will increase its investment in the plant to $33 million.

Seven types of rail cars are designed and produced at the plant today, McNeely said. He said the rail car industry is strong these days, bringing additional demand to the Barton plant.

Gov. Robert Bentley said the announcement is a compliment to Alabama's workforce and job-training programs.

"I hope this building continues to expand," Bentley said, as he looked around at the sprawling complex. "I hope FreightCar America takes over the whole area."

Brad Haddock, chairman of the Shoals Economic Development Authority, thanked FreightCar for its commitment to the area.

"The continued capital investment and additional employment will only add to the positive momentum in the Shoals area and for this company," Haddock said.

The plant once housed National Alabama, which at one time had plans to hire at least 1,600 workers to produce rail cars.

National Alabama's plans never materialized, and it never produced a product after Canadian-based National Steel Car built the plant in 2007. At that time, that appeared to quash the high hopes Shoals residents had that the building one day would become a major source of employment.

The Retirement Systems of Alabama, which provided a loan to the company, took over operations in hopes of keeping the plant alive. Navistar announced in September 2012 it would lease the plant from RSA. FreightCar then subleased a portion of it.

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