Samhongsa out of the train business?

[nblum]

It has been written on the O Gauge RR Forum and on AOL that Samhongsa and MTH have had a parting of ways and that MTH is investigating using a new company made up of former Samhongsa employees to manufacture their trains. Any insights?

[Anonymous]

Last year there was a changing of the guard at Samhongsa, and some of the Samhongsa employees that had long relationships with MTH were gone. MTH told us in early November that they were working with the new people at Samhongsa, and, except for the West Coast dock strike, production was going as planned.

Neil Besougloff
editor, Classic Toy Trains magazine

[nblum]

Thanks, one Neil to another :-).

With the changing nature of production throughout the industry, the political troubles in Korea and Iraq, one wonders what effect the sinking dollar is going to have on the costs of producing three rail trains in Korea, or even China? Particularly if war comes. One way or the other it would appear as if prices are likely to rise, no?

[Anonymous]

Hi,

I'm not sure how the dollar rate influences production costs in China and South Korea. Some contract prices may fluctuate, some may be locked in. Obviously, whatever happens in North Korea has an effect on South Korea.

Sincerely,
Neil Besougloff
editor, Classic Toy Trains

[nblum]

MTH has posted a press release on their website Feb. 12th stating that they are no longer using Samhongsa for manufacturing. They blame a significant drop in sales on Lionel's partner's alleged theft of trade secrets. My sources now tell me Samhongsa is still in the train business, contrary to what some have posted on other forums.