Australia-based UGL Ltd today announced that it has formalised a joint venture agreement with India's leading rail freight car manufacturer and diversified engineering services company, Texmaco Rail & Engineering Limited ("Texmaco").
Under this arrangement, Texmaco and UGL will jointly establish a manufacturing facility at Texmaco's facility at Belgharia, in Kolkata, according to a company statement.
The scope of the JV will cover the design, manufacture and supply of locomotive bogie frames and platforms, wagons and wagon components for the Australian and Indian market, besides exports to third countries.
In addition, both parties intend to explore related rolling stock, maintenance and refurbishment opportunities.
UGL Managing Director and CEO Richard Leupen said: "The joint venture with Texmaco marks a significant development for UGL's domestic and international rail freight customers."
"Our presence in India continues to grow, and Texmaco is an outstanding partner for this long term commitment. By drawing on our combined strengths, UGL will be ideally positioned to expand our suite of high quality, cost effective and reliable rail freight manufacturing solutions into a number of expanding markets and customers," he said.
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"UGL's leading position in the Australian rail freight engineering market is supported by continuing strength in the resources sector and an elevated level of rail tendering opportunities," said Leupen.
The Chairman of Texmaco, Saroj Poddar, added: "We are very pleased to be formalising a JV with UGL. Texmaco is committed to building an enduring business relationship with UGL through a strong alignment of vision, culture and capability."