United wins $180m in new work; will build BHP rail cars in WA

Sydney-based industrial services company United Group Ltd will construct 120 iron ore wagons for BHP Billiton's "Rapid Growth Project 4" at its Bassendean workshop, the company has announced.

The full text of a company announcement is pasted below

Leading infrastructure and industrial services company United Group Limited (ASX: UGL) today announced that it has secured new projects in the rail and resources sectors with the combined value in excess of $180 million.

These projects include:

• The supply of fifteen 4300HP GE Cv43-ACi locomotives, with options for additional quantities, for Pacific National (PN). The locomotives will offer increased traction effort and haulage capacity and are ideally suited to PN's coal haulage task in the Hunter Valley and general freight carriage requirements on the Australian standard gauge network. The locomotives will be configured and built at United Group Rail's Broadmeadow facility in New South Wales.
• The supply of a new locomotive platform structure, bogie design and 220 pre-fabricated broad gauge bogie frames for GE locomotives that will operate in Kazakhstan for GE ­ Transportation.
• The supply of 120 heavy duty "Gondola' type Lynx design iron ore wagons for BHP Billiton's `Rapid Growth Project 4'. These wagons, which will be produced in United Group Rail's Bassendean facility in Perth, follow on from the 2,500 already supplied.
• The extension to 31 December 2009 of mechanical maintenance operations for Alcan's Gove refinery, Northern Territory. United Group Resources has been servicing this contract since 2000.

United Group Limited Managing Director and Chief Executive Officer Richard Leupen said, "United Group continues to benefit from the buoyant Resources sector with demand for our services continuing to grow. We are pleased to have extended our maintenance operations with Alcan at Gove. This is our seventh year on site which illustrates the strength of our partnership.

"Our Rail business remains a priority for the Group. United Group's engineering and design innovation, combined the technology of our strategic partners, has been a clear winner with Australian customers over the past decade.

United Group continues to explore ways to strengthen its Rail operations in the Asia-Pacific region in passenger, freight and locomotive markets." Mr Leupen said.