UGL secures $108m rail deal


UGL strikes deal with Xstrata Coal to manufacture locomotives and manage the operator's maintenance program

November 18, 2009

The United Group Limited (UGL) has struck a deal with Xstrata Coal to design and manufacture 10 locomotives and run a 10 year maintenance program.

The program will be applied to the new locomotives as well as the existing 300 wagons.

UGL says the deal is worth $108 million and will strengthen the company’s position at the top of the Australian locomotive and wagon manufacturing industry.

"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 Chief Executive Richard Leupen says.

"UGL’s rail business continues to benefit from increased investment in Australia’s freight and bulk commodities markets."


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