International Railroad Discussion > "Caterpillar buying Brazilian railroad supplier"

June 24 news blurb from RAILWAY AGE Magazine:
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Caterpillar buying Brazilian railroad supplier

Caterpillar, Inc., announced Tuesday that it will buy MGE Equipamento & Servicos Ltd., a Brazilian supplier of freight car and locomotive components, for its Progress Rail Services division. Founded in 1991, MGE has about 400 employees. The transaction will mark Progress Rail’s first expansion outside of North America. Reuters quoted MGE’s general director, Ronaldo Moriyama, as saying that Progress Rail has locomotives that can be modified with Caterpillar engines at MGE’s plant in Brazil and then leased throughout South America. Moriyama said the Brazilian railroad market is also strong, noting that the state of Sao Paulo plans to invest $10 billion in railroads by 2010, and a high speed train link between Rio de Janeiro and the city of Sao Paulo is planned.