By Jane Han
Staff Reporter
Hyundai Rotem, the world's third-largest urban train car maker, said Sunday it won a $170 million contract to build 75 bi-level subway cars for the Boston metro, the oldest and one of the largest transit systems in the United States.
The Massachusetts Bay Transportation Authority (MBTA) awarded the contract to Rotem USA, which is Hyunda-Kia Automotive Group's train maker, to replace the city's old commuter rail coaches to new ones by 2012.
The fourth-largest subway system in the U.S. serves a population of 2.6 million.
Rotem said in a statement that winning the Boston project carries significance because of the city's long railroad history and its competitiveness in the U.S. market.
South Korea's largest rolling stock manufacturer said it won a bid against other international suppliers after a tight competition since last May.
The Changwon-based company said the latest accomplishment ― which follows earlier deals with transportation authorities in Pennsylvania and Southern California ― would help it quickly expand its U.S. presence and accelerate its global business efforts.
Rotem said late last month that it aims to win orders worth $1.49 billion overseas this year, up from $640 million last year. The U.S. was among the four key markets the company selected for expansion. Turkey, India and Brazil were others.
The train maker said it will eye more lucrative deals in the U.S. once its Pennsylvania factory is completed by the end of 2008. Rotem started building a plant in Philadelphia last year in compliance with ``Buy America'' laws, which state that roughly 60 percent of car manufacturing and assembly must be done in the U.S.
The global train market is estimated at $35 billion. Rotem is the third-largest seller of urban metro passenger cars, after Canada's Bombardier and France's Alstom.