Hyundai Rotem, a train-making unit of Hyundai Motor Group, said Thursday it completed a railway production line in Araraquara, 280 kilometers from Sao Paulo, Brazil, to spur the railway business in South America. It is the firm’s third plant overseas after the production line in Turkey and the U.S.
“The company expects the Brazilian plant with annual production capacity of 200 train units to take a hub role in spurring its business in Central and South America,” a company official said.
The company added the railway market in those regions is estimated at 8 trillion won ($7 billion).
Hyundai Rotem CEO Kim Seung-tack (center) poses with officials from Sao Paulo state and Araraquara city government in an opening ceremony for the firm’s Brazilian production line, held at the plant site, located in Araraquara, Thursday. (Hyundai Rotem)
In particular, the new plant will put the Korean train-maker in a good position in a bid in Brazil where the public projects require 60 percent of a contract to be either made or purchased locally, the company said. The biggest economy in South America is expected to launch about 2.5 trillion won worth of subway projects by 2020.
Hyundai Rotem entered Brazil in 2003 by supplying 24 trains for Line No. 1 of the subway in Salvador. It won the 300 billion won project to build trains for subway Line No. 2 in 2013 as well.
By Seo Jee-yeon (email@example.com)