Progress Rail Services, a subsidiary of Caterpillar Inc., plans to locate a locomotive manufacturing facility in Sete Lagoas, in the state of Minas Gerais, Brazil, to serve the South American diesel-electric locomotive market. Progress Rail will operate the facility through its subsidiary, MGE, a railroad equipment and services company.

The facility will assemble and manufacture Electro-Motive Diesel-branded locomotives in the 12,000 square meter space on a 100,000 square meter site. Electro-Motive Diesel Inc. is a subsidiary of Progress Rail Services.

"We are proud to announce the opening of this state-of-the-art facility, which will allow us to produce locomotives locally for our Brazilian customers" said Billy Ainsworth, president and chief executive officer of Progress Rail Services.