In cooperation with Hyundai Rotem, Hyudai Corporation has made a maintenance contract for 90 high-speed subway trains that were supplied to Ukrainian Railroad Administration following the supply contract for them in the end of 2010.
At 1:30pm local time (8:30 Korean time) on 15th this month, the CEO of Hyundai Corporation, Kim Jung-Rae made a long-term maintenance contract for the 90 high-speed subway trains supplied by Hyundai with Mr. Anatoliy Vladimirovich Shchkar, the CEO of Ukraine Railway Speed Company under Ukrainian Railroad Administration in the capital of Ukraine, Kiev.
The contract period is 5 years and 7 months with the contract amount of 100 million dollars (equivalent to about 115 billion KRW). If an additional high-speed subway train supply contract under discussion between Hyundai Corporation and Ukrainian Railroad Administration, the total contract amount will increase more since the maintenance for the additional subway trains will be included.
This maintenance contract has great significance in that it is the first comprehensive overseas maintenance project performed by a domestic company. This project includes a comprehensive maintenance package including the supply of spare parts required for maintenance, the establishment of a maintenance system and technology training and transfer as well as the maintenance of subway trains.
Therefore, through this contract, Hyundai Corporation and Hyundai Rotem has obtained the equal position in competing with the world’s leading companies in railroad cars-related O&M(Operation & Maintenance) and E&M(Electrical & Mechanical) as well as the supply of railroad cars. In addition, it is considered that we have taken the advantageous position to win the contract for about 4-trillion-won railroad modernization project planned by Ukrainian Railroad Administration.
It is said that global railroad car and E&M suppliers doing their business in CIS region such as Siemens, Bombardier and Alstom begin to recognize ‘Hyundai’ as their biggest competitor after Hyundai Corporation and Hyundai Rotem won the contracts for the supply and the comprehensive maintenance of high-speed subway trains in Ukraine following the contracts for the supply and the installation of subway trains and signal equipments, global railroad car and E&M suppliers doing their business in CIS region.
Hyundai Corporation and Hyundai Rotem are quite motivated to expand the existing markets and break into new markets continuously through a closer cooperation between the both companies.*