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Hitachi Opens $100 Million Railcar Factory as US Transit Demand Rises

The company deploys AI and robotic inspection at Maryland facility
Japan
h 6501.TSE Blue Chip 150 OM 60
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Japanese conglomerate Hitachi Ltd. commenced operations Monday at its new railcar manufacturing facility in Hagerstown, Maryland, marking a ¥14.8 billion ($100 million) bet on growing American demand for urban transit infrastructure.

The 307,000-square-foot plant represents Hitachi’s largest rolling stock facility in North America, equipped with artificial intelligence systems and a four-legged robotic inspector designed to enhance quality control. The company positions the carbon-neutral factory as a showcase for digital manufacturing capabilities, though the actual production efficiency gains from these technologies remain to be demonstrated.

Hitachi executives, including Executive Chairman Toshiaki Higashihara, attended the ceremonial opening of the facility, which can produce up to 20 railcars monthly. The plant will fulfill existing contracts worth billions for transit systems in Washington D.C., Baltimore and Philadelphia, with the first deliveries expected later this year.

The Maryland location reflects broader industry trends toward domestic production to satisfy federal Buy America requirements for transit projects receiving government funding. However, Hitachi faces established competitors including Kawasaki Heavy Industries and Siemens AG in the competitive North American rail market.

The facility will employ approximately 460 workers directly, with local officials projecting additional economic benefits for the region’s supply chain network.

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