UPDATE 1-Greenbrier unit to cut production, affect 400 workers

Fri May 28, 2010 6:43am EDT

* Says subsidiary Gunderson to cut production rates

* To implement 4-day work week at marine barge operation

May 28 (Reuters) - Railroad equipment supplier Greenbrier Cos (GBX.N) said its unit Gunderson LLC would cut production rates at its marine barge operation due to uncertainties in the marine market, affecting close to 400 employees. Increased market uncertainty due in part to the oil spill in the Gulf of Mexico and delays in oil drilling projects have caused customers to delay decisions, the company said. In addition, the recently adopted River Plan would increase regulation, bureaucracy, and costs of operating the Gunderson facility, Greenbrier said.

The plan would address issues such as habitat conservation and restoration, bank treatment, landscaping and stormwater management for the land along the Willamette River, according to the City of Portland Bureau of Planning and Sustainability website.

The company said it has implemented a four-day work week at its marine barge operation.

Greenbrier, however, said that the work schedule of the nearly 300 workers dedicated to Gunderson's rail operations is unaffected by the decision.

Gunderson, located at a deepwater facility on the Willamette River for over 70 years, manufactures railcars and marine barges.

Shares of the company closed at $14.85 Thursday on the New York Stock Exchange. (Reporting by Divya Sharma in Bangalore; Editing by Aradhana Aravindan) ((divya.sharma@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: divya.sharma.reuters.com@reuters.net))

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