Hyundai Rotem Signs MOU with Saudi Arabia on Rail Vehicles... Anticipating First High-Speed Train Export Case

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] Hyundai Rotem is set to establish a railway vehicle manufacturing plant in Saudi Arabia.

According to industry sources on the 17th, Hyundai Rotem, a company specializing in railway vehicles within Hyundai Motor Group, signed a Memorandum of Understanding (MOU) with the Saudi Ministry of Investment and the Railway Authority to establish a railway vehicle manufacturing plant. Hyundai Rotem plans to use this agreement as a foothold to expand its presence in the Middle Eastern market.

Hyundai Rotem will also collaborate on the 2.5 trillion KRW high-speed rail procurement project promoted by the Saudi Railway Authority. If Hyundai Rotem wins the Saudi high-speed rail project, it will mark the first export case of Korean high-speed rail.

Additionally, the company plans to jointly develop next-generation hydrogen locomotives. This project aims to replace the diesel locomotives currently operated by the Saudi Railway Authority. The total project cost of the Saudi NEOM Smart City initiative is estimated to reach approximately 700 trillion KRW, with the vehicle procurement budget alone reportedly amounting to about 3.6 trillion KRW.