Hyundai Rotem lands 1.2 trillion won Australian rail deal

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Hyundai Rotem lands 1.2 trillion won Australian rail deal

Published: 30 Jun. 2023, 17:26

A rendered image of Hyundai Rotem's railway running in Queensland, Australia. [HYUNDAI ROTEM]

Hyundai Rotem has clinched a 1.2 trillion won ($910 million) contract from Australia to supply railway trains for Queensland's metro lines, the railway system affiliate of Hyundai Motor said in a regulatory filing Friday.

Hyundai Rotem was selected as the final supplier for the Queensland Train Manufacturing Program, in which the Korean company participated in a consortium with local company Downer Rail. Hyundai holds 86 percent of the stake while Downer has 14 percent.

Under the agreement, Hyundai Rotem and Downer will manufacture and supply 65 railway trains for seven years through December 2031.

Hyundai Rotem said it will build a factory in Torbanlea, northern Queensland, for the manufacture.

The railways will come with the newest technologies that will allow passengers to safety get into and out of the vehicles even when the height of the platforms vary by location, Hyundai added.

The latest deal is around 38.5 percent of the company's total sales in 2022.

The company first entered Australia in 2016 by securing a contract to build trains for the Sydney metro line.

On Friday, Hyundai Rotem also said it inked a 215.4 billion won contract with the Defense Acquisition Program Administration to supply tanks to the state-run military procurement agency. The deal extends to Dec. 8, 2026.

Shares of Hyundai Rotem rose 2.5 percent to 36,550 won Friday.

BY SARAH CHEA [chea.sarah@joongang.co.kr]