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Johannesburg - Industrial brands group Barloworld [JSE:BAW]
and Electro-Motive Diesel (EMD), a subsidiary of Progress Rail Services Corp, a
Caterpillar company, have formed a joint venture - Electro-Motive Diesel
Africa.
The new joint venture will provide rail and transit
customers with industry-leading locomotive products and services, including
access to cutting-edge diesel and emissions technology.
Effective June 2012, Electro-Motive Diesel Africa will offer
services and solutions to rail customers in South Africa and neighbouring
countries, leveraging EMD and Barloworld’s existing resources in the region.
EMD has a significant fleet of locomotives in SA. This new
venture demonstrates its strong commitment to harness local skills, create jobs
and extend a full range of services to customers.
The formation of
Electro-Motive Diesel Africa also further demonstrates the company’s dedication
to growing its already well-known global footprint.
“Africa is an important market for us and the joint venture
with an established company, like Barloworld in southern Africa, will position
us well to support the needs of existing and new customers in South Africa and
the region,” said Billy Ainsworth, CEO of Progress Rail and EMD.
“Our commitment to support the customer base and build a
customer-focused business that will increase local procurement of parts is a
key objective.
"We are delighted to now be able to offer a complete range of
rail services via the new joint venture company.”
Barloworld CEO Clive Thomson said the venture into rail is
consistent with the group's strategy to invest in identified growth sectors to
create value for stakeholders.
“We look forward to delivering improved service to existing
customers and developing new relationships with suppliers in South Africa and
in the region.”
The transaction closed on June 15.
