Locomotive manufacturing is taking another hit in Australia as UGL announced it's laying off at least 25 workers at its Broadmeadow facility.
It comes as the company's OSCAR building contract with the NSW government comes to an end, according to The Newcastle Herald.
The news comes only days after fellow Australian locomotive manufacturer Downer EDI announced that it will slowly move all train manufacturing offshore over the next one to two years.
While "the demand for locomotives in Australia remains strong …this new agreement with EMD means Downer will be better positioned to meet our customers' demands for better value and shorter lead times," Fenn said.
"We will have a sustainable locomotive business as we exit high cost manufacturing and concentrate on sales, repairs, and maintenance and whole of life asset management."
However "during the transition period, which is expected to take between 12 months and two years, Downer will continue to manufacture locomotives in Australia," the company said.
According to Australian Manufacturing Workers' Union organiser Jim O'Neill unions will be meeting with Downer next week to discuss the future of locomotive manufacturing in Australia.
O'Neill was unavailable for further comment at the time of publication.