Hyundai Rotem inks $664 million deal to supply electric trains to LA Metro

Hyundai Rotem Co., a South Korean railway system maker under Hyundai Motor Group, said on Tuesday it has won a $663.7 million deal to build electric trains for the Los Angeles County Metropolitan Transit Authority (LACMTA).

The contract is for Hyundai Rotem USA Corp. to replace LACMTA’s aging electric trains in operation since 1993 and meet an expected increase in traffic demand during the 2028 LA Olympics and Paralympics.

The deal marks Hyundai Rotem’s biggest contract in value terms in the US.

The Korean company said it has been chosen as the supplier after meeting LA Metro’s strict requirements, including the quality and technology of the trains and on-time delivery as well as prices.

To confirm Hyundai Rotem’s train manufacturing technology, vehicle performance and verification capabilities, officials from the LA transit authority have visited the Osong railway test track built by the Korea Railroad Corp. (KORAIL).

Hyundai Rotem plans to deliver its trains to LACMTA by April 2028 after completing their performance tests. The company didn’t reveal the contracted quantity of the train cars.

The electric trains to be used by LA County are the type of train consisting of two-car units, with up to six units connected. Each carriage can accommodate up to 245 passengers.

Hyundai Rotem said the trains, which can run at a maximum speed of 113 km per hour, will be deployed on the 26.4 km B (Red) Line, operating from downtown LA to North Hollywood, and the 10.3 km D (Purple) Line from downtown LA to Koreatown.

ALREADY ACTIVE IN NORTH AMERICA

The Korean train manufacturer has already clinched several supply deals in North America.

It won contracts to supply unmanned electric trains to Vancouver, Canada in 2005 and 2018.

In 2006, Hyundai Rotem won double-deck train supply deals from California and Floria and an electric train supply contract from Philadelphia.

The company has also built double-deck vehicles and electric trains for the transportation authorities in Boston and Denver.

“Based on the experience and capabilities we have accumulated while carrying out several local projects in the US, we will do our best to deliver electric trains that will satisfy both locals and tourists,” said a Hyundai Rotem official.

Hyundai Motor Co. is the top shareholder of Hyundai Rotem with a 33.8% stake.

Write to Jin-Won Kim at jin1@hankyung.com


In-Soo Nam edited this article.