Downer EDI Limited (ASX:DOW), in partnership with Electro-Motive Diesel, has been awarded a contract to build trains for Pilbara focused iron ore miner Fortescue Metals Group Limited (ASX:FMG).
The engineering company says the value of the project is worth more than $73 million and has an option to extend.
Downer will work to design, build and deliver 19 locomotives to Fortescue with the first due in August this year.
CEO Grant Fenn says the fleet of locomotives will provide Fortescue with extra haulage capability, fuel consumption improvements, exhaust emission benefits and reliability improvements.
In the first half of the 2012 financial year Downer generated a net profit of $85 million.
FMG Price at posting:
$4.71 Sentiment: None Disclosure: Held
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