Gemco Rail, a subsidiary of Engenco (ASX:EGN), is partnering with Rio Tinto (ASX:RIO) to bring local iron ore rail car manufacturing and bearing maintenance to the Pilbara region for the first time.

Under the partnership, Gemco Rail will establish a facility in Karratha, Western Australia, to support Rio Tinto's Pilbara operations.

The company said it will also build 100 iron ore rail cars for Rio Tinto over a six-year period.

It also said the contracts with Rio Tinto are collectively expected to be worth around $150M.