SIOUX CITY, Iowa (AP) — A Dallas company has canceled plans to build a nearly $31 million rail car maintenance facility in Sioux City.

The Sioux City Journal reports that TrinityRail officials confirmed the bad news to city officials earlier this month.

When TrinityRail announced the Sioux City expansion in October 2014, a surge in tanker cars transporting crude oil and ethanol had raised demand for the company's services. But demand for tankers has dropped sharply as global prices for crude oil collapsed.

The 150,000-square-foot facility was supposed to create 250 new jobs including 160 that would pay $16.63 an hour. That's why state officials approved tax credits for the project.

TrinityRail is a subsidiary of Trinity Industries, a Dallas-based conglomerate.

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