CIMIC’s (ASX:CIM) UGL wins A$297M Locomotive Manufacturing Contract  

Highlights

  • CIMIC Group informed that UGL has been awarded a contract to design, manufacture and supply new fuel-efficient diesel electric locomotives for Pacific National.
  • The contract will generate revenue to UGL of approximately AU$297 million over seven years.
  • The announcement stated that the contract is effective from October 2021.

Read More: CIMIC Group’s (ASX:CIM) UGL secures contract extension worth AU$150 million

ASX-listed Australian multinational contractor CIMIC Group contractor (ASX:CIM) shared on 1 October 2021 that its subsidiary engineering firm UGL Limited has been awarded a contract to design, manufacture and supply new fuel-efficient diesel electric locomotives for long-standing client, Pacific National.

The Group which offers engineering and construction services informed that the contract will raise revenue of approximately AU$297 million to UGL over seven years and solidifies UGL’s position as Australia’s only manufacturer of freight locomotives.

The announcement revealed that the C44 Evolution locomotives will be the most technologically advanced, fuel efficient, and environmentally compatible diesel electric locomotives in Australia and will be designed and manufactured in Newcastle, New South Wales.

UGL which is an engineering Company, was purchased by CIM in 2016.

The Company stated that the contract is effective from October 2021.

The stock CIM was spotted trading at AU$19.620 per share on ASX at 1.20 PM AEST.

Read More: PlaySide (ASX:PLY) acquires ‘Dumb Ways To Die’ Franchise

Bottom Line:

UGL’s unique position as Australia’s only manufacturer and maintainer of domestically manufactured locomotives enables CIMIC to ensure a strong home-grown supply chain and ongoing local employment. The C44 Evolution locomotive is better for the environment with lower carbon emissions and better fuel efficiency than anything Australia has seen before. Besides, through the delivery of these locomotives the Company is looking forward to continue its strong relationship with Pacific National.

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK