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July 4, 2016

UGL wins $446m maintenance contract from Pacific National

Australia-based manufacturer UGL has secured A$594m ($446m) contract for the supply and maintenance of locomotives to Pacific National.

By Srivani Venna

Australia-based manufacturer UGL has secured A$594m ($446m) contract for the supply and maintenance of locomotives to Pacific National.

The contract will cover renewal of the agreement for 10 years of maintenance for the 71 Class Siemens locomotives in Nebo in Queensland to 30 June 2026.

In addition, the existing maintenance contract for the 92/93 Class locomotives will be extended from 1 July 2020 to 30 June 2026, while the current NR Class locomotives contract will be extended from 1 February 2020 to 30 June 2026.

It will also involve maintenance of the Victorian EMD locomotive fleet until 30 June 2026.

"The contract will cover renewal of the agreement for 10 years of maintenance for the 71 Class Siemens locomotives in Nebo in Queensland."

The company has also signed an agreement to supply three C44ACi and three PH37 narrow gauge locomotives to Pacific National for freight haulage in Queensland.

UGL’s CEO Ross Taylor said: "We are very pleased to extend our long-term relationship with Pacific National and look forward to working together over the next ten years in the provision of cost-effective and efficient maintenance services.

"Having secured an additional A$1.3bn ($974m) during the second half of fiscal year (FY)16, our order book has grown to A$4.7bn ($3.5bn), a strong achievement in current market conditions."

During the second half of 2016, UGL also secured A$45m ($33m) contract to supply multi-disciplinary asset maintenance services to Alcoa’s Pinjarra alumina refinery for three years.

Taylor further added: "As we look forward to the commencement of the 2017 financial year, UGL is strongly positioned with 80% of revenue now sold either in our order book or within our pipeline of preferred opportunities.

"Our base business is well on track to deliver revenue growth of at least A$300m ($224m) and 4.0% EBIT margins in FY2017, excluding the Ichthys projects."

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