PARAGOULD, Ark.— A $75 million factory that will produce axles for railcars is to open in Paragould and create 40 new jobs, officials announced Tuesday.

Axis LLC, a joint venture between American Railcar Industries Inc. and Amsted Industries Inc., is to build a 135,000-square-foot facility, where production is to begin by the third quarter of this year.

The plant will be on seven acres along Jones Road.

“This is another great example of existing business bringing new ideas and investments to Arkansas,” Gov. Mike Beebe said. “American Railcar has already had a major economic impact on northeast Arkansas and this new partnership with Amsted Industries will continue the positive growth in Greene County.” St. Charles, Mo.-based American Railcar already has manufacturing facilities in Marmaduke and Paragould. The plants turn out hopper and tank railcars.

“American Railcar is pleased to announce this major capital investment which further grows our business in northeast Arkansas,” American Railcar Chief Operating Officer and Executive Vice President Jim Cowan said. “This new axle manufacturing facility will have no equal in North America.” Chicago-based Amsted Industries manufactures locomotive and railcar wheels and bearings, along with locomotive and railcar suspension and specialty components.