SEOUL, September 19 (AJP) - South Korean rail manufacturer Hyundai Rotem has opened its first American production facility, a move aimed at aligning with Washington’s push to localize infrastructure supply chains.
The 8,500-square-meter plant, called Hyundai Rotem Smart Electric America, officially opened on Wednesday (local time) in Riverside, east of Los Angeles, the company said Friday.
Demand for rail infrastructure in Southern California is likely to surge ahead of the 2028 Los Angeles Olympics and Paralympics, presenting a window of opportunity for new entrants.
Hyundai Rotem, which has supplied trains to projects from Philadelphia to Los Angeles, is seeking to position itself as a reliable partner to U.S. transit authorities.
The plant will manufacture and test propulsion control systems, traction motors and auxiliary power units — core components that power trains and manage their braking and electrical systems.
“This is a crucial starting point for realizing our commitment to quality in the U.S.,” Lee Yong-bae, Hyundai Rotem’s chief executive, said at the opening ceremony. He added that the plant was expected to support job creation and local economic growth.
The investment is also a strategic bet on the Trump administration’s “Buy America” rules, which require federally funded infrastructure projects to source a significant share of their materials and components domestically. For foreign suppliers like Hyundai Rotem, a U.S. manufacturing base is no longer optional but a prerequisite to compete for contracts.
The Riverside plant will not only handle production but also provide maintenance support and training for American operators, a move the company hopes will strengthen ties with local communities and rail firms.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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