[Photo provided by Hyundai Rotem Co.]
Hyundai Rotem Co., the locomotive and rolling stock unit of South Korean conglomerate Hyundai Motor Group, has sealed a 900 billion won ($828.6 million) order to supply railcars to Iran on what is seen as the company’s biggest deal in the Middle East.
According to industry sources on Sunday, the Korean company signed an agreement with Islamic Republic of Iran Railways to build 450 diesel-powered rail cars over the next 78 months. Once they are built, the trains would run on a stretch of 960 kilometers in the suburbs of Tehran.
Under the term, Hyundai Rotem is to build 150 rail buses at its factory in Changwon in Korea and to assemble the remaining 300 in Iran in cooperation with Iranian Rail Industries Development Co.
Hyundai Rotem first entered the Iranian market in 1984 to build 20 diesel locomotives and won another deal in 2004 for 150 diesel rail buses. With the latest contract, the firm’s total tally in Iran would stand at 620.
The company’s business in Iran took a hit in 2010 when the global community toughened sanctions against Iran to make the country give up its nuclear program. But Hyundai Rotem said it was able to win the Iranian government’s trust as it continued to support operations during the period.
Shares of Hyundai Rotem closed Monday up 1.61 percent at 18,950 won.
By Lee Seung-hoon and Kim Hyo-jin
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]