Westinghouse Air Brake Technologies (WAB) said Wednesday it signed a $1.2 billion agreement with Union Pacific (UNP) to modernize its AC4400 locomotive fleet.

The agreement, signed in Q4, follows Union Pacific's 2022 order scheduled for completion in 2026 and provides for fuel consumption reductions of more than 5%, a 14% increase in tractive effort and an 80% increase in reliability.

Production will occur at Wabtec's US facilities, with deliveries beginning in 2027.