HUTCHINSON, Kan. (AP) — Plans to develop a $40 million railroad car refurbishing plant in Hutchinson are being delayed.

Mervis Railcar announced last year that it planned to build the plant in Hutchinson, with construction starting in April. However, company officials said Thursday those plans will be delayed because of dropping oil prices and new rules for tank cars that ship hazardous fluids, which federal officials released last week.

The Hutchinson News reports the company indicated it still intends to build the plant but it’s unsure how long the delay will be.

Company CEO Adam Mervis says the company has invested several million dollars in planning for the plant so it will work to make it happen. However, he says company officials are considering how the new federal rules will affect the industry.