Cardo receives order worth SEK 105 million for brakes and service in Australia

Cardo's business area Cardo Rail, via its subsidiary SAB WABCO D & M Engineering Ltd, is to deliver the complete brake systems for the new Millennium train, which will operate in the suburbs of Sydney. The order is worth SEK 105 million and in addition to the brakes for 81 suburban electric rail cars also includes service of the equipment over a 15-year period. There is an option on a further 120 cars and possible extension of the maintenance period.

The maintenance contract accounts for approximately SEK 60 million of the value of the order and is the biggest in Cardo Rail's history as regards extent and period.

"We want to expand the aftermarket share of our operations considerably, and the maintenance contract is therefore a success and a significant step in line with our strategy," says Cardo's president and CEO Kjell Svensson.

"This order also further strengthens our leading position in Australia as a supplier of brake systems for passenger trains."

The client is the car builder Clyde Engineering in Sydney, and the end customer is City Rail, which is responsible for train services in the suburbs of Sydney. The contract contains an option on a further 120 cars and an extension of the maintenance period.

The brake systems will be delivered starting in 2000 and through 2002. The first train will be commissioned in early 2001.

Cardo Rail is a business area in the Cardo group and one of the world’s largest manufacturers of brake systems and brake components for rail vehicles. Turnover amounts to approximately SEK 2.5 billion, and the number of employees stands at roughly 2,000. Marketing is conducted mainly under the SAB WABCO trademark.

Malmö, Sweden, January 11 2000

Cardo AB (publ)