However, core train manufacturing and final assembly will continue to be done in Australia.
"You can't compete when the labour costs in the workshop are a tenth of yours," says Mr Richard Leupen, UGL's CEO. "The reality is that in certain sectors it's very hard for the domestic market to compete, and so yes we are off to India with a manufacturing facility."
The new Indian plant will produce locomotive bogie frames and platforms as well as freight wagons. The venture will also look at opportunities for rolling stock maintenance and refurbishment.