Hyundai Rotem signed a $200 Mil contract for supply of EMUs to Turkey
Hyundai Rotem Company, a manufacturer of trains and an affiliate of Hyundai Motors Group, on Saturday announced that it has signed a contract worth approximately $200 million with the Izmir Suburban System Inc. (“IZBAN”) for the supply of Electric Multiple Units (EMU).
Mr. Min-ho Lee, President and CEO of Hyundai Rotem Company, Korean Ambassador to Turkey Sang-Kyu Lee, Transport Minister Binali Yildrim, Izmir Governor Cahit Kıraç, Turkish State Railways (TCDD) head Suleyman Karaman, Members of Parliament from Izmir and 500 others were in attendance at the signing ceremony held at Depot in Izmir.
As the third largest city and the birthplace of the first railway in Turkey, the City of Izmir expects to increase transportation efficiency and capacity in the city through the deployment of the high-tech EMUs to be supplied by Hyundai Rotem and these high-tech EMUs to become the city’s new landmark.
Hyundai Rotem beat off competition from Chinese and European rivals to win the contract with IZBAN by utilizing its differentiated localization strategy and price competitiveness. Izmir EMUs will be manufactured in Hyundai Eurotem, Hyundai Rotem’s local manufacturing plant in Turkey, and progressively supplied from February of 2014.
Beginning from the supply of EMUs to Istanbul in 2001, Hyundai Rotem established Hyundai Eurotem, its local manufacturing plant, in 2006 and expanded its business presence through the supply of about 1,000 trains (Light Railway Vehicles, Diesel Railcars, and Electric Locomotives, and etc) worth approximately $1.8 billion. Over the last ten years, Hyundai Rotem has established a competitive and strong position in the Turkish railway market,
“Hyundai Rotem and TCDD have achieved win-win development through their deep bond of brotherhood based on trust,” said Mr. Min-ho Lee, President and CEO of Hyundai Rotem Company. “Hyundai Rotem will return friendship, trust, and respect to Turkey by demonstrating the highest quality and the state-of-the-art technology in this Izmir EMU Project.”
Hyundai Rotem has now focused mostly on winning contracts for the supply of EMUs to the Turkey’s major cities such as Ankara and Istanbul as well as Turkey’s High Speed Rail Project. Moreover, starting with Turkey as its base, Hyundai Rotem is planning to expand its market into Egypt, Sweden and other areas around the region.