Balfour Beatty, the international infrastructure group, announces today that Balfour Beatty Rail has agreed to sell its UK trackwork manufacturing business to Progress Rail Services, a wholly-owned subsidiary of Caterpillar Inc.
The trackwork business designs and manufactures manganese steel castings, track panels, turnouts and crossings at five sites in the UK. The business generated revenue of £55 million in 2010 and had gross assets of £43 million.
Over the last few years, the procurement model has evolved in the provision of core services to our major UK rail clients, eliminating the competitive advantage of owning manufacturing capability and leading to the sale of the business. Balfour Beatty Rail remains committed to its core business as a global, fixed-rail infrastructure contractor.
Manfred Leger, CEO of Balfour Beatty Rail, said:
“In Progress Rail, we have found an industry partner who will develop the UK switching and crossing business further and will integrate it into their worldwide manufacturing programme. I am looking forward to working with Progress Rail as a strong supply chain partner for our global rail infrastructure contracting activities.”
ENDS
Analyst/investor enquiries:
Basak Kotler
Balfour Beatty plc
Tel 020 7216 6924
Media enquiries:
Marjorie Hooper
Balfour Beatty
Tel 020 7216 6883
Notes to Editors:
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Balfour Beatty (www.balfourbeatty.com) is a world-class infrastructure group operating in professional services, construction services, support services and infrastructure investments.
We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise.
Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation); and commercial (offices, leisure and retail).
The Group delivers services essential to the development, creation and care of infrastructure assets including project design, financing and management, engineering and construction, and facilities management services.
Balfour Beatty employs 50,000 people around the world.
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Balfour Beatty Rail provides world-class rail infrastructure services in over 20 countries.
It delivers systems and services across the whole lifecycle of rail assets, from planning through design and implementation to maintenance and asset management.
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Progress Rail Services (www.progressrail.com), a wholly-owned subsidiary of Caterpillar Inc., is a leading supplier of remanufactured locomotive and railcar products and services to the railroad industry, operating one of the most extensive rail service and supply networks in North America.
It serves customers through a network of more than 130 locations across the United States, Canada, Mexico, Brazil, Italy, Germany, and the United Kingdom, with more than 4,300 employees.
Progress Rail Services is headquartered in Albertville, Alabama.
