Hyundai Rotem to Sign MOU with Russian Railways
Hyundai Rotem (CEO Min-ho Lee), a subsidiary of Hyundai Motors Group, announced that it signed a memorandum of understanding (MOU) with Russian Railways (Gapanovich, Senior Vice President) on a mid-to long-term business cooperation for the Russian railway and transportation sector, as Kim Sung-hwan, Minister of Foreign Affairs & Trade oversaw the signing of agreement, at the main building of the ministry.
Based on the contract, Hyundai Rotem and Russian Railways will collaborate in railway vehicle, parts supply and new technology R&D areas for the next 5 years, which includes obtaining a Russian GOST certification and the local test-run.
With regard to this, Hyundai Rotem plans to launch development of suburban electric trains (160km/h) in collaboration with Russian Railways in the first half of next year and actively participate in Moscow ring line and subway projects worth 2.5 trillion KRW. As a host country for the upcoming 2014 Winter Olympic Games and 2018 World Cup, Russia plans to invest in construction of a large-scale infrastructure and purchase new railway vehicles to transport visitors between cities.
he conclusion of the MOU was the result of two companies’ consistent efforts to strengthen business cooperation relationships since 2010. The two confirmed detailed collaborative areas and principles through a workshop held by Russian Railways on October 12.
Russian Railways pays attention to Hyundai Rotem as the company successfully supplied electric trains to major advanced countries including Europe and the US as well as Ukraine and Kazakhstan. It expects the company to develop and supply excellent quality railway vehicles in Russia which requires similar railway environment and standards.
An official from Hyundai Rotem said, “Following the visit to the Changwon Plant by the delegation of Russian Railway on October 23, the two companies will sign a comprehensive framework agreement concerning selection of specific vehicle models, trail product development, mass production and supply.”