Unipart shakes up Australian rail industry with huge acquisition deal

Unipart Group Australia Pty. has officially acquired the former Schaeffler Rail Bearing reconditioning business in Auburn, New South Wales, effective 12 August 2024. This strategic move underscores Unipart’s commitment to expanding its capabilities in the Australian rail sector.

Expansion into Rail Maintenance

The business, originally known as Bearing Engineering Services Ltd., was established in 1991 and integrated into Schaeffler in 2005. It plays a crucial role in Australia’s rail maintenance landscape, refurbishing approximately 20,000 bearings and axle boxes annually for both passenger and freight rail customers. This acquisition will integrate the extensive experience and facilities of the Schaeffler business into Unipart’s existing operations.

Unipart’s Growth Strategy

Unipart has been active in the Australian rail market since 2005 and officially established its Australian operations in 2007. The company has built a robust customer base across freight and passenger services, offering supply chain, consultancy, and technology solutions. The acquisition is expected to significantly enhance Unipart’s local MRO (Maintenance, Repair, and Overhaul) capabilities, providing a more comprehensive service to its clients.

Leadership Insights

Darren Leigh, Chief Executive Officer of Unipart, highlighted the strategic importance of the acquisition. “The rail sector is a core focus for Unipart’s growth, and we are thrilled to extend our capabilities in Australia. We look forward to integrating the new team and offering an expanded range of performance-improving services and solutions.”

Mark Carling, Managing Director for Unipart Rail in Australia and Asia Pacific, elaborated on the benefits of the acquisition. “While we have provided materials supply, consultancy, and technology services in Australia for several years, this acquisition allows us to utilise our UK-based MRO expertise more effectively. The addition of a local MRO service enhances our ability to support our customers with a responsive, high-quality service.”

Continuity and Enhancement

The acquisition ensures that the Auburn site retains its expert reconditioning team, facilities, and tooling. This continuity is crucial for maintaining the high standards of service for bogie bearings. Mark Carling also noted that while maintaining the excellent service currently provided, Unipart will work with the new team to integrate its capabilities and culture, aiming to further enhance performance and offer additional services to the Australian rail industry.