Wilmerding, Pa.-based Westinghouse Air Brake Technologies, more commonly known as Wabtec (NYSE:WAB), is going ever greener in Canada.
On Tuesday, Wabtec announced that its MotivePower subsidiary has won a $63 million contract to build 10 new, low-emission locomotives for Canada's Metrolinx -- an agency of the province of Ontario and the regional transportation authority for the greater Toronto and Hamilton area. This order follows a previous order from Metrolinx, under which Wabtec was asked to repower 11 locomotives to use the same advance configuration.
All of these locomotives in question will meet the new Tier 4 emission standards set by the EPA and will "reduce diesel particulate emissions by about 85 percent and NOx emissions by about 75 percent compared to the current models," says the company.
According to Wabtec, delivery of the locomotives will begin in 2016, and may be only the beginning of a wave of new business for Wabtec's Boise, Idaho, subsidiary. Company CEO Albert J. Neupaver noted in a statement that "new environmental standards are [being] phased in over the next several years," and "MotivePower is well positioned to participate in this market by offering environmental and operational performance upgrades for new and existing diesel-electric commuter locomotives throughout North America."
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Wabtec. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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