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Hyundai Rotem gets $563M deal to supply trains for Cairo's metro

Published: 25 Aug. 2022, 13:13

A railway train developed by Hyundai Rotem runs in Cairo. [HYUNDAI ROTEM]

Hyundai Rotem clinched a $563 million deal from Egypt to supply railway trains for Cairo's metro lines, the railway system affiliate of Hyundai Motor announced Thursday.

The size of the Egyptian railway project totals $656 million won, and Hyundai Rotem will hold an 86 percent stake. The rest is claimed by the National Egyptian Railway Industries Company (Neric), a joint establishment between the Egyptian government and the private sector.

Under the agreement, Hyundai Rotem and Neric will manufacture and supply 320 railway trains for two metro lines through 2028. The two companies will also work together for maintenance eight years after construction is finished.

In supplying the new trains, Hyundai Rotem will focus on installing parts and equipment capable of resisting extremely high temperatures in the capital city together with air conditioners and electronic displays featuring metro routes.

The manufacturer attributed government support and its past experience of participating in transit projects in Egypt as the main factors in winning the latest bid.

Export-Import Bank of Korea and Finance Ministry will offer state-funded loans of $560 million for the project, according to Hyundai Rotem.

The company first entered Egypt in 2012 by securing a contract to build trains for the first line in Cairo’s metro system. It went on to build trains for the second and third lines in 2017 and 2019.

Shares of Hyundai Rotem traded 0.16 percent lower at 31,350 won as of 1:10 p.m. on Thursday, following a 17.16 percent jump the previous day when news about the signing of the deal emerged.

BY PARK EUN-JEE [[email protected]]