Progress Rail Services, a subsidiary of Caterpillar Inc., plans to locate a locomotive manufacturing facility in Sete Lagoas, in the state of Minas Gerais, Brazil, to serve the South American diesel-electric locomotive market.
Progress Rail has agreed to open the facility to better serve its Brazilian and South American customers, and will operate the facility through its subsidiary, MGE Equipamentos e Servicos Ferroviarios Ltda. (MGE), the company said.
The facility will assemble and manufacture Electro-Motive Diesel-branded locomotives in the 12 000 m² space on a 100 000 m² site. Electro-Motive Diesel Inc. is a subsidiary of Progress Rail Services, and a provider of locomotive technology with 33 000 diesel-electric locomotives in operation globally. Progress Rail anticipates this project could create up to 600 jobs when at full capacity.