UGL says Indian JV won't hurt WA ops

Engineering firm UGL has joined with an Indian rail freight car manufacturer to establish a manufacturing facility in India.

The company has signed a joint venture agreement with Texmaco Rail & Engineering, by which the two groups will set up a manufacturing facility at Texmaco's Belgharia Kolkata site.

UGL operates Goninan, a rail car assembly business in Bassendean, and a spokesperson for UGL told WA Business News that the joint venture would cause "no disadvantage" for Goninan.

"What you'll see at Bassendean is probably more assembly-related work," the spokesperson said.

"You're not going to get wagons coming in from India, coming off boats and landing on ports.

"Most of the assembly will still be done at Bassendean.

The joint venture will supply rail wagons and locomotive bogie frames and platforms for the Australian and Indian markets from the facility.

Both companies would explore related rolling stock, maintenance and refurbishment opportunities, UGL said.

"The joint venture with Texmaco marks a significant development for UGL's domestic and international rail freight customers," UGL chief executive Richard Leupen said in a statement.

"Our presence in India continues to grow, and Texmaco is an outstanding partner for this long term commitment."