Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, August 19, 1994 TAG: 9408230020
SECTION: BUSINESS PAGE: A7 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
DATELINE: LENGTH: Medium
The contract was signed publicly at a news conference Thursday by Prabhat Jain, president of Virginia Transformer, and Gunter Nieke, president of Nieke Elektroparate Berlin.
Under the licensing agreement, Virginia Transformer will acquire the designs to produce inductors, chokes and small specialty transformers for use in rail cars in all of North America.
In an interview after the news conference, Jain said the contract will not directly increase employment at the plant on Glade View Drive, where 160 people work. But he said he expects the deal to increase business and, ultimately, the number of employees.
The contracts and "other things will push and propel us" to a greater share of the transit business, Jain said. Each product sold potentially expands business and employment, he said.
The business was founded in 1971 with six people, and 35 were working there in 1982 when Jain joined the company.
Transformers manufactured for the transit industry constitute "a significant part of our business," Jain said. The German technology permits installation of the equipment on railroad cars rather than on the ground along the tracks.
He explained that a transformer takes energy at high voltage and transfers it to low voltage needed to operate air conditioning, lights and other customer energy needs.
Because the transformer will be on the train itself, the train will be self-contained. If power to the train is interrupted, he said, the facilities aboard will still work so the passengers "will be safe and comfortable."
The deal with Nieke is important because it proves that not only large companies can engage in international trade and agreements, Jain said.
Gunter Nieke said at the press conference that his company is "a strong player" in the European and Australian markets. The company employs 80 people in Berlin.
Nieke said signing the agreement with Virginia Transformer now puts the German company in a stronger position in the North American market.
Jain said his company has sold equipment to metro subway systems in Washington, New York, Philadelphia, Los Angeles, San Diego, Baltimore, Dallas, Denver and other cities.
The company has sold nontransit transformers for the expansions of Roanoke Memorial Hospital and Yokohama Tire Co. in the Roanoke Valley.
Virginia Transformer said it is working with several rail transit system contractors to secure orders worth several million dollars.
by CNB