TEXT-Downer EDI says wins locomotive contract

(Following is a release by Australian engineering firm Donwer EDI Ltd (DOW.AX))

SYDNEY, April 8 - Downer EDI Limited has announced that its Rail division, Downer EDI Rail, with its technology partner, Electro-Motive Diesel (EMD), has won major new orders to supply an additional 19 locomotives to BHP Billiton Iron Ore.

The standard SD70ACe Tier 2 emissions compliant locomotives, which will include an isolated crew cab, will be delivered in two stages from April 2008.

The first 10 locomotives, to be manufactured by EMD, will depart EMD in North America at the end of April 2008, with final commissioning to be undertaken by Downer EDI Rail at their Port Hedland facility.

This rapid delivery will be achieved through manufacturing schedule adjustments developed with EMD at their London, Ontario facility. The second order for 9 locomotives will be delivered in mid 2009.

Once completed, the order will take to 55 the total number of SD70ACe locomotives delivered to BHP Billiton by Downer EDI Rail.

Commenting on the order, Chief Executive Officer of Downer EDI Rail, Mr Guy Wannop, said: "The ongoing orders with BHP Billiton are testament to the high level of service reliability of these locomotives and the commitment from the Downer EDI Rail/EMD partnership to understanding the needs of long term clients such as BHP Billiton.

"A particular feature of these locomotives is their Tier 2 emissions compliance which places them at the forefront of locomotives operating in the Australian market. We are proud to be delivering AC traction Tier 2 emissions compliant locomotives in Australia -- a breakthrough for the environment and the rail heavy haul industry."

"These contracts illustrate Downer EDI Rail's ability to develop innovative solutions for our clients, and to strengthen our position in the Pilbara," Mr Wannop said.