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Hyundai Rotem wins deal to supply trains to Iran

All Headlines 11:18 May 04, 2016

SEOUL, May 4 (Yonhap) -- Hyundai Rotem Co., a train-making unit of Hyundai Motor Group, said Wednesday that it has signed a tentative deal to supply diesel-driven trains to Iran for about US$260 million.

The deal signed with Iran's state-run railway corporation calls for Hyundai Rotem to produce and supply 150 train cars. An official contract is expected to be inked in late July, the company said in a press release.

The trains to be supplied will be deployed on the 960-kilometer line in operation in the suburban region of Tehran.

Hyundai Rotem said that the contract from Iran was possible in part thanks to its continued cooperative business ties in Iran even after international sanctions were imposed on the country.

Hyundai Rotem signed a similar deal in 2004 to supply 150 train cars to Iran but it had to be put on hold after 2010 due to the sanctions. Before the suspension, the company had supplied 68 cars of the total without receiving pay.

As the sanctions were lifted earlier this year, the company said that it will hold negotiations to settle the unpaid bill worth around 87.6 billion won (US$76.1 million) and supply the remainder of the promised train cars to Tehran.

kokobj@yna.co.kr
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