Hyundai Rotem completed a railway production line in Araraquara, 280 kilometers from Sao Paulo, Brazil, to spur the railway business in South America. It is the company’s third assembly unit 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 representative said.
Hyundai Rotem added the railway market in those regions is estimated at 8 trillion won (USD 7 billion) and the most prominent projects are expected to come from emerging markets including Chile, Columbia and Peru.
The new plant will put the Korean rolling stock manufacturer 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. Brazil is expected to launch about 2.5 trillion (USD 2 billion) won worth of subway projects by 2020.
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