Visions - Fall 2007 - (Page 12)

Transportation SC Rail Leasing America, Inc. Acquires Southern Illinois Railcar Company and its Affiliate Ohio Ag Terminals LLC S C Rail Leasing America, Inc., a subsidiary of SCOA and SC, has acquired for $46 million the ongoing business and operations of Southern Illinois Railcar Company (SIRC) located in Collinsville, IL and its affiliated company, Ohio Ag Terminals, LLC (Ohio Ag), located in Cairo, OH. SIRC is a full-service rail equipment operating lessor specializing in covered hopper railcars. The company currently owns and manages over 2500 railcars. Formed in 1990 by Fred and Jeanie Parsons of Troy, IL, SIRC started operating with a fleet of 10 railcars and by the late 1990’s had expanded the fleet to over 8,000 railcars. SIRC, together with Ohio Ag, operates railcar repair and material trans-load facilities located in Carterville, IL and Cairo, OH. Both facilities have the capacity to perform any repair or modification program to any type of rail freight car other than tank cars. SIRC’s customer base includes industry leaders in the railroad, grain, and fertilizer industries. Along with railcar leasing, SIRC also offers railcar management and brokerage services. According to Mr. Naohiro Yoshimura, Executive Director of Transportation Systems in Chicago and Chairman/CEO of SC Rail Leasing America,“The majority of the freight cars we purchased are covered hopper cars which are used mainly for grain and grain products. This market segment is now booming due to a strong demand for ethanol produced from corn. With this acquisition, we will accelerate the business in this segment including DDG, a bi-product of ethanol, and also diversify to different industries such as cement, sand and fertilizers.” North America is the world’s largest freight railcar market, operating approximately 1.5 million cars, thirty percent of the global market. Currently, fifty percent of North American freight railcars are owned by major leasing companies such as GE Rail, CIT Rail and GATX. Although SC Rail is a mid-size leasing company, the company believes that it can achieve higher returns on assets due to its unique business model. In order to minimize depreciation costs, SC Rail The Collinsville, IL employees pictured with Mr. Yutaka Sekine, GM and SVP of MPE Group, and Mr. Masao Tabuchi, GM of Transportation and Equipment Division, SC Tokyo. The majority of the freight cars we purchased are covered hopper cars which are used mainly for grain and grain products. This market segment is now booming due to a strong demand for ethanol produced from corn. acquires used cars and puts them into operation after making necessary repairs and modifications at its own shops to meet each lessee’s requirements. SC Rail Leasing America Inc. will continue the tradition of SIRC in providing excellent customer service and assisting with any rail equipment question or supply need. With Sumitomo’s financial expertise and capability, SC Rail Leasing America, Inc. is planning to expand its fleet to over 8,000 railcars in 5 years which will place the company in the top 10 railcar leasing companies in the industry. For more information on SC Rail Leasing America, Inc., contact Naohiro Yoshimura at Naohiro.Yoshimura@sumitomocorp.com 12 visions Fall 2007

Table of Contents Feed for the Digital Edition of Visions - Fall 2007

Visions - Fall 2007 Contents CANTEX State of the Art Plant Key to Southwestern Market SCOA Steel & Non-Ferrous Group Enters Wind Energy Market Perennial Power Holdings Continues Policy Of Expertise In Marketplace SCOA Finances New Fluorspar Mine in Mexico SC Rail Leasing America, Inc. Acquires Southern Illinois Railcar Company and its Affiliate Ohio Ag Terminals LLC New Sumitomo Subsidiary Summit VetPharm Enters Booming Animal Healthcare Market

Visions - Fall 2007

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