Maddington-based engineering company Coote Industrial Ltd has signed an exclusive Australian distribution agreement with a subsidiary of global company Caterpillar Inc.
Maddington-based engineering company Coote Industrial Ltd has signed an exclusive Australian distribution agreement with a subsidiary of global company Caterpillar Inc.
Under the agreement, Caterpillar-owned Progress Rail Services Corporation will provide Coote with exclusive supply chain access to certain locomotive / railcar parts and rebuilds, as well as certain track maintenance technology.
Included in the deal is Chemetron Rail Welding systems, supply of used and remanufactured railway components and Progress Rail's locomotive modernisation solutions using fuel-efficient and low emissions Caterpillar engines.
The agreement with Coote Industrial provides Progress Rail with a keenly sought after footprint in Australia through a rapidly expanding sales distribution network.
"We are very pleased with the prospect of working closely with Progress Rail. It will enhance both entities' opportunities for expanding business in both rail systems and maintenance," Coote managing director Mike Coote said.
"It specifically enables Coote subsidiary, Gemco Rail, to expand its product offerings supported by its increase in service maintenance locations throughout Australia."
With more than 5,009 employees and 120 locations, Progress Rail is one of the largest and most diversified providers of rail systems maintenance services to the North American railroad industry.
Progress Rail recently expanded its rail services business outside of North America with the acquisition of MGE Equipamentos & Serviços Ferroviários Ltda, a market leader in Brazil.
"The alliance with Coote is the next step for Progress Rail as it continues its strategic expansion outside of North America, " Progress vice-president for international market development Chuck Wills said.
"Progress Rail and Coote are an excellent fit as both companies are dedicated to providing the highest levels of customer service. The Australian railway sector is vibrant, and we believe we can offer solutions that will benefit the industry. We selected Coote Industrial as our distributor based on the capabilities they have demonstrated."
The announcement comes as Coote Industrial confirms its plans for a national rollout of locomotive, rollingstock and track maintenance facilities. According to Mr Coote, to compliment its Western Australian operations, Coote Industrial will have established maintenance facilities in at least South Australia, Victoria and New South Wales before the end of 2008.
"We have identified up to 12 suitable sites around the country - we must now work through the feasibilities before committing on the most strategically located sites." Mr Coote said.
