Siemens rail-car plant may shut unless it gets more business - fast.

Unless Siemens Transportation System gets another contract to manufacture rail cars by the end of next month, the company will close its new car shell plant in Carson in the summer of 1997, said the plant's new general manager.

John Ketelson said that because the Metropolitan Transportation Authority cut its "L.A. Standard Car" order by 22 cars last August, the plant doesn't have enough work to warrant keeping it open.

"With (74) cars, we had three years to find additional work and prove this plant out for (our headquarters in) Germany," said Ketelson. "With 52 cars, we've got two years, and there should already be (additional) orders on the books, because it takes 18 months to design (new cars). We need to have an order, and we're crossing our fingers. We've already lost a couple of (bids)."

Siemens currently has bids out to build rail cars for transit agencies in St. Louis and Salt Lake City, said Ketelson.

The loss of the 22 cars in the MTA order also meant that partner AAI Corp. dropped out of the contract.

Meanwhile, Siemens AG of Germany has bought out Duewag AG. Last month, Siemens merged Siemens Duewag Corp. of Sacramento (the original winning bidder of the MTA contract) with Siemens Transportation System of New Jersey, eliminating the Duewag name from the company.

Also, the smaller car order means Siemens' percentage of work going to minority- and women-owned firms as subcontractors will decline, said Ketelson, since the percentage of the contract going toward manufacturing, assembly and parts is decreasing, while the amount of money needed for scientific and engineering work stays about the same.

High hopes

The Carson plant is currently employing about 30 people and expects to employ close to 100 when full production is under way. The factory is the first shell manufacturing facility of its type in the Untied States, and Siemens had hoped to eventually export rail car shells from here to other countries.

If Siemens closes the Carson factory in July 1997, that will leave two years on the company's five-year lease. Ketelson said in that event, the company would attempt to buy out the lease or sublease the 115,400-square-foot building on eight acres at 3025 E. Dominguez St. The facility, which is located along Carson's northeast border with Long Beach, is owned by Watson Land Co.

Other events in recent months that have combined to delay production of the Los Angeles rail cars and affect the project include:

* The subcontractor designing the heating, ventilation and air conditioning system for the cars has fallen several months behind schedule because the company is busy working on a Portland, Ore., contract.

Siemens is sending engineers and technicians to the subcontractor's Colorado facility to assist the company, Sutrak USA.

"To date, not one of the (Sutrak) deliverables has been forwarded to the MTA," noted a September MTA status report on the contract. "The issue with Sutrak transcends schedule; in view of their lack of performance, we seriously question their ability to meet minimum quality and reliability requirements, and their ability to provide a unit which performs as specified."

Ketelson said Siemens is committed to "assisting (Sutrak) in catching up."

* Siemens is still working on a redesign to make the cars lighter.

* The MTA has yet to make a decision on whether to include a driverless car "upgrade" option on 34 cars.

It is estimated by the MTA that initial car delivery will be about four to six months late.