AUSTINTOWN, Ohio -- The assets of financially troubled YSD Industries today were acquired by Global Railway Industries Ltd., a Canadian provider of railway products and service equipment.The all-cash transaction is valued at $2 million, according to a press release issued this morning by Global Railway Industries of Calgary, Canada.The acquisition includes YSD's machinery and equipment at its Henricks Road plant; the land, buildings, patents, licenses, computer hardware and software; engineering designs; and existing sales order backlog. The asset purchase was funded with the company's existing cash reserves. Post closing, Global's cash reserves are approximately $9 million in Canadian dollars. The company says it has incurred no additional debt."We believe Global will realize significant value from the timing of its purchase of YSD's assets", says Mike Kohut, president and chief executive officer of Global. "Since bottoming out in 2002, there is ongoing strength in the new rail car market in the US. Orders for new rail cars have began to surge, which should have a positive impact for suppliers in this industry."YSD Industries was founded in 1924 as The Youngstown Steel Door Co., and once employed 10 times its current work force. Following the collapse of the Mahoning Valley's steel industry, Steel Door was sold to an investment group in the 1980s and renamed YSD Industries. YSD manufactures rail car components and is one of the largest suppliers in the design and manufacture of rail car doors and sides in the United States. YSD also supplies outlet gates for hopper cars, boxcar roofs, autorack side screening and roofs, and a complete line of stamped grating products. Sales were approximately $15 million (U.S.) in YSD's most recent fiscal year.As part of this transaction, Global Railway says changes to YSD's cost structure will save the operation approximately US $3.2 million annually. This is expected to make YSD profitable at the current level of sales and accretive to Global within three- to six months as these changes take effect, according to the company.In welcoming Global Railway to the Mahoning Valley, U.S. Rep. Tim Ryan, D-17, praised the Youngstown/Warren Regional Chamber and Youngstown State University's College of Engineering for "helping to solidify the deal." The congressman's written statement took note of Global Railway's intention to "expand their operations in the future and integrate new technologies into the facility."Ryan as well as the chamber and YSU were instrumental in providing YSD access to job training for existing employees, equipment grants for new investment to be made at YSD's plant and access to engineering expertise, Global Railway says in its news release.An estimated 35,000 to 40,000 new rail car builds are expected in 2004, up from approximately 18,000 in 2003, according to Kohut. Historically, YSD generated as much as US $45 million in revenue annually during market peaks, he notes. "Given the renewed strength in the new rail car market in North America, Global believes that YSD's growth potential is excellent."Global executives met yesterday with leadership of United Steel Workers Local 2310, which represents approximately 150 workers at YSD. Labor leaders could not be reached for comment as of this posting. "Similar to previous companies acquired by Global, YSD is technically competent and has a very competitive product line and a skilled labor force," Kohut says. "We have begun to put in place a continuous improvement plan to further strengthen operations and financial results over time." Global Railway is a publicly traded company listed on the Toronto Stock Exchange. It operates a Canadian division, Prime Railway Services, that manufactures rail car doors and replacement parts primarily sold to Canadian freight carriers, while YSD's products are sold primarily for new rail cars and U.S.-based freight carriers."Given that Global has been selling rail car doors into the Canadian market through its subsidiary Prime Railway services, we expect to see synergies emerge between the two divisions as the integration of YSD is completed," says Kohut. "By owning both YSD and Prime Railway Services, we have two subsidiaries capable of fully servicing the North American rail car door industry with timely and low cost manufacturing and distribution of railcar parts."Global Railway says its strategy is to grow through acquisitions. In recent months it has completed a number of private-placement stock sales to raise cash. In its most recent earnings report, the company reported record third-quarter results for the three-month and nine periods ending Sept. 30. For the three months ending Sept. 30, consolidated revenues grew $8.9 million (Canadian).Visit Global Railway Industries at www.globalrailway.com"