Hyundai Rotem to build first U.S. plant in 16 years

[Graphics by Song Ji-yoon and Han Yubin]

Hyundai Rotem Co. is poised to begin a significant venture by constructing its first U.S. plant in 16 years, a move prompted by a recent order for electric railway vehicles worth 870 billion won ($658 million) from Los Angeles, the United States. The company’s decision aims to bolster its customer base by facilitating local production capabilities.

The company has various location candidates, including Los Angeles County.

The decision to build the U.S. plant came after the Korean rolling stock manufacturer won an 870-billion order from Los Angeles County Metropolitan Transit Authority (LACMTA) to supply 182 HR5000 cars for the LA Metro in a project designed to modernize the aging fleet of car vehicles that have served Los Angeles County since 1993.

The order requires the manufacturer to build a local production facility in the United States.

Hyundai Rotem runs electric railway vehicle manufacturing plants both in Korea and overseas, including Brazil and the Republic of Türkiye. The U.S. plant will serve as a strategic move to facilitate the expansion of its North American operations.

Hyundai Rotem has seen considerable growth in its railway division. The company received new orders worth more than 5.27 trillion won in 2023, with the railway division‘s order backlog surging by 53 percent year-on-year to 11.4 trillion won.