Posted May. 05, 2016 07:41,
Updated May. 05, 2016 07:45
Hyundai Rotem, a train-making affiliate of Hyundai Motor Group has signed a memorandum of understanding on Tuesday with Iran's state-run railway corporation to supply 150 diesel-driven train cars to Iran.
Under the agreement, the Islamic Republic of Iran Railways will purchase 150 diesel train cars manufactured by Hyundai Rotem at 260 million U.S. dollars, with Hyundai initiating loans at 85 percent of contract price. The Export and Import Bank of Korea will lend 85 percent of purchase costs while Iran's Ministry of Economic Affairs and Finance will make payment guarantee. Hyundai Rotem will officially sign the contract at the end of July after negotiating on commercial and technology issues with Iran's state-run railway corporation.
In November 2004, Hyundai Rotem had received orders from a state-owned firm RAJA that is under the umbrella of Iran Railways to supply 150 diesel trains. Hyundai started to supply them at the end of 2007 but the project suspended in 2010 due to international sanctions against Iran.
"We have continued to support them during the sanctions period, and Iran Railways compensated this time with a private contract," sources at Hyundai Rotem said.