Hyundai Rotem goals to exceed 2 trillion received in rail answer (railway) enterprise income for the primary time subsequent 12 months, the corporate’s CEO Lee Yong-bae has just lately introduced.
In line with the corporate, Lee offered the purpose throughout a gathering with Korean reporters at Hyundai Rotem’s electrical prepare upkeep depot situated in Kangy Angy close to Sydney, New South Wales, Australia, on Nov. 27 (native time).
Lee said, “Subsequent 12 months, we’ll create a groundbreaking 12 months by recording over 2 trillion received in income for the primary time.” He additionally expressed his ambition to have interaction in direct competitors with conventional powerhouses from France and Japan within the New York subway contract competitors based mostly on world top-level technological capabilities.
Hyundai Rotem recorded 1.496 trillion received in rail answer sector income final 12 months and is forecast to submit 1.9 trillion received this 12 months.
Lee’s confidence stems from Hyundai Rotem’s rising presence in large-scale tasks corresponding to the electrical prepare tender being performed by the New York Metropolis Transit Authority (NYCT). The NYCT mission includes changing 500 getting old electrical prepare automobiles working in New York Metropolis subway’s Division 1 space (with further choices for over 500 automobiles). The bidding quantity is predicted to far exceed the Morocco double-decker prepare provide mission value 2.2 trillion received, which was the most important single mission to this point.
Hyundai Rotem has already accomplished the prequalification (PQ) course of, the place NYCT evaluates the eligibility of potential bidders prematurely. NYCT technical groups visited Hyundai Rotem’s Changwon plant and analysis institute to completely consider Hyundai Rotem’s railway manufacturing technological capabilities. Solely 4 corporations participated within the PQ, together with France’s Alstom, Japan’s Kawasaki, and Hitachi. Notably, Alstom and Hitachi are main corporations ranked 2nd and seventh respectively within the world market as of 2023.
Lee Gained-sang, Hyundai Rotem’s chief know-how officer (CTO) and sirector of the Rail Resolution Analysis Institute, stated, “NYCT solely grants bidding {qualifications} to corporations that go the PQ, and we’ve got gained recognition for our global-level technological capabilities by constructing belief by way of tasks such because the Los Angeles Metro mission.” He added, “Though we had been a quick follower, we’ve got now reached an equal degree with world top-tier corporations, and we’re able to emerge as a pacesetter beginning subsequent 12 months.”
Hyundai Rotem is making an attempt to enter nations corresponding to Saudi Arabia, Thailand, and Vietnam, along with Australia, Morocco, and Uzbekistan the place it has already succeeded in large-scale contracts, and america the place it has entered the bidding competitors. In Uzbekistan, it’s exploring further exports of high-speed railways, and with Morocco, it’s pursuing the institution of a three way partnership contract for electrical prepare upkeep for as much as 30 years, which is deliberate to be signed early subsequent 12 months.
Lee stated, “China, Japan, and Europe have massive railway industries and set circumstances that enable solely their home corporations to enter bids. The breakthrough we discovered was Central Asia, and we’ll proceed our world enlargement of high-speed railways towards the Center East and Africa, increasing our enterprise worldwide subsequent 12 months.”
Hyundai Rotem emphasised that it has secured aggressive benefits distinct from different corporations corresponding to China when it comes to technological capabilities in addition to supply schedule compliance and high quality. Kim Jung-hoon, government managing director of Hyundai Rotem’s Rail Resolution Enterprise Division, stated, “Chinese language corporations have a tendency to vow 100% compliance with consumer necessities at low costs, however then expertise supply delays and extended high quality subject decision, whereas Hyundai Rotem competes in a course that builds belief.”
Lee additionally offered the purpose of elevating the localization price from 85% to 95% based mostly on Hyundai Rotem’s overwhelming analysis and growth (R&D) capabilities. Presently, there are 582 R&D researchers within the railway sector. These personnel are engaged on duties to localize electrical parts that had been beforehand imported from Japan in cooperation with small and medium-sized enterprises.
Lee emphasised, “Railway is a core business the place safety and technique are mixed together with protection, so it have to be achieved because the ‘better of one of the best.’ We are going to proceed technological growth to attain internalization of as much as 95% within the railway sector if attainable.”
