ROCHELLE — Officials at Nippon Sharyo released the following statement regarding recent news the company lost a contract for bi-level passenger railcars for Illinois and California.

“We have informed our employees that the Bi-Level Passenger Railcar Project being manufactured out of this facility has been transferred to a substitute manufacturer in another state. This difficult conclusion is the result of ongoing technical complications with the design of these cars that have caused significant delays in the production schedule, as well as other challenging business considerations. Under the new contract, the project has also changed from a bi-level passenger car design to a single-level car. The complications with this project have resulted in a reduction in the workforce at the Rochelle facility over the last year. The company will continue its business operations going forward with a reduced number of employees to meet the needs of existing customers and contractual responsibilities. We are grateful for the hard work and dedication of our employees, and have provided severance packages to those affected by this announcement. We are also committed to providing support in any efforts our employees make in securing new jobs.”

Under the new contract, Siemens in Sacramento, California will build 137 single-level passenger railcars.