UGL Secures $108 million Contract With XStrata

November 18th, 2009

UGL Limited (UGL) has continued to strengthen its position as Australia’s leading locomotive and wagon manufacturer and maintenance provider with $108 million of new supply and maintenance projects secured. The new orders include:

  • Design and manufacture of 10 C44ACi locomotives, incorporating technology from GE Transportation, for Xstrata Coal;
  • A 10-year maintenance program for these locomotives and a further 300 wagons.

UGL Rail will service these orders from its Taree, Goulburn and Broadmeadow facilities, and the majority of the manufacturing and supply projects have already commenced.

UGL Managing Director & CEO Richard Leupen said these orders underpinned UGL’s position as Australia’s leading provider of rolling stock products and services to the freight rail sector and augmented recent contracts wins in the passenger rail sector.

“We are delighted to be partnering with leading organisations such as Xstrata Coal. UGL has worked with Xstrata Coal for many years and we continue to be instrumental in helping them achieve their commercial objectives.

“The manufacturing and 10-year maintenance program with Xstrata Coal is a particularly pleasing development as it illustrates UGL’s ability to provide a total solution for our customers, and at the same time, lock in longer term, predictable revenue streams.

“UGL’s Rail business continues to benefit from increased investment in Australia’s freight and bulk commodities markets. Given our expertise and experience in rolling stock design, manufacture and maintenance, we’re well-placed to support this investment.”

Mr Leupen added that UGL’s Rail business has a strong pipeline of tendering opportunity in the Australian market and is assessing other opportunities in new and existing international markets.

www.unitedgroupltd.com

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