Caterpillar Subsidiary to Open New Locomotive Plant

Nov. 1, 2010
Progress Rail will invest $50 million to convert an Indiana facility

Progress Rail Services intends to rehab an idle manufacturing plant in Muncie, Ind., as a facility for assembling locomotives, in a $50-million project. A state agency is incentivizing the project with up to $3.5 million in grants based on the number of jobs created, which may be up to 650 by 2012. Local tax abatements are also being coordinated. Progress Rail Services is a Caterpillar facility that manufactures, repairs and refurbishes freight cars, locomotives and rail track.

Progress Rail Services, a Caterpillar Inc. subsidiary, intends to rehab an idle manufacturing plant in Muncie, Ind., as a facility for assembling locomotives. The news was announced by the Indiana Economic Development Corp., a state agency that is incentivizing Progress Rail Services with up to $3.5 million in performance-based tax credits and up to $1 million in training grants based on the manufacturer’s job-creation plans. The IEDC also is coordinating other tax abatement incentives with state and local authorities.

“Progress Rail is the type of modern, advanced manufacturing company that every community desires. It not only provides excellent, high-quality jobs but it opens opportunities for our existing businesses as well. This is fantastic news for our community” stated Todd Donati, President of the Delaware County commissioners.

Progress Rail Services aims to invest about $50 million to convert a 740,000-ft2 plant once operated by ABB Power T&D Co. The plant has been closed since 1998. The plant would be in operation by 2012, and would have up to 650 workers. The company’s president and CEO integrated the operation would start up in late 2011 and increase to full production in 2012. Total employment would be up to 650 workers.

"We are pleased to announce the opening of this state-of-the-art facility that will allow us to better serve our customers," stated Progress Rail Services’ Billy Ainsworth. "We believe the Muncie community and the state of Indiana will offer our organization an outstanding location from which we will produce world-class products."

Caterpillar paid $1 billion to buy Progress Rail Services in 2006. The Alabama-based subsidiary manufactures, repairs and refurbishes freight cars, locomotives and rail track for Class 1, short-line and transit railroad companies, as well as private car owners. It also oversees reclamation of used rail, wrecked or retired railcars and locomotives and other scrap metal.

Progress Rail Services has more than 130 operations in the U.S., Canada, Mexico, Brazil, Italy, Germany, and the U.K.