WABTEC has announced that it will invest Reais 20m ($US 3.8m) to expand its operations in Brazil, aiming to strengthen its engineering and manufacturing capabilities in order to meet growing demand in the region.

A new production line will be created at the locomotive plant in Contagem in the state of Minas Gerais. Nearby, Wabtec is also establishing a new Global Engineering Centre which will be the company’s first in Latin America, due to open next month.

The new centre will undertake research and development to support projects in Brazil and abroad. The 9000m² facility will house laboratories and workstations for 300 engineering positions, with recruitment now underway.

Wabtec launched a new locomotive production line at Contagem in April, increasing production capacity by 28%. By 2026, the company expects to employ over 1000 people at Contagem across its locomotive factory and new engineering centre.

The company will also open two new logistics centres in Brazil later this year. Located in Governador Valadares in Minas Gerais and Monte Alto in the state of São Paulo, they will provide capacity for growth in other business areas, including infrastructure maintenance equipment, digital intelligence, and components.

“This expansion demonstrates our confidence in the Brazil market and the region’s growth potential,” says Danilo Miyasato, president and regional leader of Wabtec in Latin America.

“We’ve adjusted our processes to increase production volume and diversify our deliveries,” Miyasato says. “This upgrade enables us to serve regional customers and new markets, like Australia and Uruguay, with new locomotive models.”

For detailed data on locomotive orders worldwide, subscribe to IRJ Pro.