Hyundai Rotem Completes First Local Electric Component Factory for Railways in the U.S.

Production and Testing of Electric Components, Plus Follow-Up Projects
Quick Response to 'Buy America' Policy

Hyundai Rotem has established its first local production base for electric and electronic components for railway vehicles in the United States, accelerating its efforts to penetrate the North American market.

Commemorative photo of the completion ceremony of the 'Hyundai Rotem Smart Electric America (HRSEA)' rolling stock factory held on the 18th (local time) in Riverside, California, USA. From the left, Mike Futrell, Head of Los Angeles (LA) Metro Rail Vehicle Business, Jess Montes, Riverside City Administrative Mayor, Lee Yongbae, CEO of Hyundai Rotem, Chuck Conder, Riverside City Council Member, and Kim Youngwan, Consul General of Korea in LA. Hyundai Rotem

On the 19th, Hyundai Rotem announced that it held a completion ceremony for the 'Hyundai Rotem Smart Electric America (HRSEA)' local railway vehicle electric component factory in Riverside, California. The ceremony was attended by key figures from the Los Angeles (LA) Metro, the Riverside city government, the Consul General of the Republic of Korea in LA, as well as executives and staff from Hyundai Rotem and its partner companies.

HRSEA, built on a site of approximately 8,500 square meters (about 2,600 pyeong), was established to supply key electric components (propulsion control devices, traction motors, auxiliary power units) for railway vehicles delivered locally. The factory will not only produce and test these electric components, but will also handle local after-sales customer service management and follow-up projects related to new electric components.

Lee Yongbae, President and CEO of Hyundai Rotem, emphasized in his commemorative speech that quality is a "non-negotiable value" in the railway industry, stating, "The HRSEA factory will serve as an important starting point for realizing our commitment to quality locally in the United States." He added, "We look forward to contributing to job creation and economic revitalization in Riverside and advancing into the future together with the California community."

With the establishment of Hyundai Rotem's electric component factory in the United States for the first time, the company has laid the foundation to stably operate and expand its local business in line with the growing demand for railways in the U.S. The U.S. federal government enforces the 'Buy America' policy, which requires a certain percentage of American-made materials and parts to be used in infrastructure and railway projects that receive federal funding. For foreign companies to enter and remain competitive in the U.S. market, establishing a local production base is essential.

Accordingly, Hyundai Rotem expects to actively respond to the business needs of major U.S. railway operators through HRSEA. By entering the market alongside domestic partners (VCTech, JKA) and producing parts directly in the U.S., the company anticipates securing a faster and more stable supply chain, which is expected to provide a competitive edge in upcoming new railway projects in the United States.

In particular, all electric components produced at HRSEA are key devices that incorporate Hyundai Rotem's core technologies and expertise, demonstrating the company's strong commitment to localization. The propulsion control device and traction motor control and adjust the driving and braking forces of railway vehicles, while the auxiliary power unit is a critical device that supplies power to various service equipment.

Hyundai Rotem plans to further strengthen its North American market network centered on HRSEA, anticipating that demand for large-scale railway infrastructure in the U.S. will peak around the 2028 LA Olympics and Paralympics.

Previously, in January last year, Hyundai Rotem won the LA Metro electric train project from the Los Angeles County Metropolitan Transportation Authority (LACMTA) in California. The company has also accumulated a steady track record in the U.S., winning contracts for the California double-deck passenger car and Florida double-deck passenger car and the Philadelphia electric train project in 2006, the Boston double-deck passenger car and Denver electric train projects in 2008 and 2010, and additional Boston double-deck passenger car projects in 2019 and last year.