by Barrett Baker
Some very amazing things are being manufactured and assembled right here in our region. One of the companies doing just that is Plasser American in Chesapeake. They manufacture a variety of machines that keep America’s railways in good shape for both commercial freight and commuter passenger trains.
The equipment they build includes tamping machines that pack crushed stone or ballast under railway tracks to stabilize and realign them for smoother and safer train operation; ballast bed cleaning to restore track drainage and load-bearing capacity; and track laying and renewal on open tracks and turnouts. For more than 70 years, they have been a market leader in the manufacture of track maintenance equipment.
When we first visited Plasser American back in 2021, they were planning major renovations to their Chesapeake campus, and they were also ramping up an apprenticeship program that would help funnel a new generation of local workforce talent into their expansion efforts.
We recently had the opportunity to reach out to Thomas Blechinger, President and CEO of Plasser American to find out what’s new and what the future holds for the company.
Thomas Blechinger, President and CEO of Plasser American
Calling Chesapeake Home
Before Plasser American could move forward with their expansion, the company first had to develop and present a proposal to the Austrian parent company’s board of directors and shareholders demonstrating that U.S. expansion would be financially sound. With North America home to the world’s largest railroad network, Blechinger and his team were confident the U.S. market would continue to grow—and that investing early in that growth was essential to the company’s long-term strategy.
A segment of that proposal included conducting a comprehensive assessment of whether Chesapeake, Virginia was still the best place for their operations. For historical reference, Plasser equipment first came to the United States in 1957, and Plasser Railway Maintenance Company was established in Rockford, Illinois in 1961. The company rebranded as Plasser American in 1967 and moved their operations to Chesapeake in 1970. Part of the move was based on the fact that the company couldn’t test their tamping machines when the ground was frozen, which in Rockford, was roughly one-third of the year.
As part of Plasser American’s growth assessment, explored other locations across the United States where frozen ground wouldn’t be a problem. They also considered environmental factors, like flooding, hurricanes, earthquakes, and tornadoes. Tangible assets such as workforce talent, shipping availability, and local manufacturing partners were part of the site vetting process.
At the end of a very extensive search, they determined Chesapeake was still the best place to be.
A Strategy for Growth
Another key component of the expansion plan was the construction of a new administrative facility, along with significant investments to expand engineering and production operations. Once the decision was made to keep Chesapeake as the company’s long-term home, Plasser American committed $45 million to the growth strategy.
The company expanded its rail infrastructure from three tracks to seven, enhancing both testing capabilities and connectivity to the national rail system. As a result, Plasser American has doubled its production capacity, created several new jobs, and introduced new products and machines that are now entering the market.
Moreover, they continue to focus on making their products “Buy American” compliant. This means that products meet U.S. federal requirements for domestic content, primarily under the Buy American Act (BAA) or Build America, Buy America (BABA), ensuring products are made in the U.S. with a high percentage of domestic materials.
According to Blechinger, it makes good business sense to do so. It reduces transportation costs and logistics, it creates local jobs, and it improves the American supply chain. And since Plasser American doesn’t have mass manufacturing—they build roughly 40 machines each year—they don’t buy in bulk, so, it’s logical for them to seek out local suppliers and machine shops in the area to get any parts they need manufactured here.
In It For The Long Haul
By expanding its footprint in Coastal Virginia and adhering to “Buy American” requirements, Plasser American is positioning itself to drive local economic development while delivering long-term benefits to the American railway system as a whole.
“The railroad is the backbone of the nation,” says Blechinger. “The railroad has been rolling here in the United States for nearly 200 years. We have a great opportunity here in the U.S. with rail in general, and I think we are positioned such that Plasser American can not only be an equipment supplier to the railroad, but we can also serve as a technology and solutions partner, to provide more holistic support.”
