The trackwork business, part of Balfour Beatty Rail, designs and manufactures manganese steel castings, track panels, turnouts and crossings at five sites in the UK. The business generated revenue of £55m in 2010 and had gross assets of £43m.
Explaining why it was selling, Balfour Beatty said that the procurement model for rail services had evolved in recent years, eliminating the competitive advantage of owning manufacturing capability. Balfour Beatty Rail remains committed to its core business as a global, fixed-rail infrastructure contractor, the company said.
Balfour Beatty Rail chief executive Manfred Leger said: “In Progress Rail, we have found an industry partner who will develop the UK switching and crossing business further and will integrate it into their worldwide manufacturing programme. I am looking forward to working with Progress Rail as a strong supply chain partner for our global rail infrastructure contracting activities.”
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