South Korean railway manufacturer Hyundai Rotem completed construction of its inaugural US production facility for electric train components, positioning itself to capitalize on federal infrastructure mandates and anticipated demand from the 2028 Los Angeles Olympics.
The company inaugurated Hyundai Rotem Smart Electric America in Riverside, California, on September 18, with officials from LA Metro, Riverside city government, and the South Korean consulate attending the ceremony. The 92,600-square-foot facility will manufacture propulsion control units, traction motors, and auxiliary power systems for railway vehicles.
The plant represents a calculated response to Washington’s Buy America policy, which requires federally funded transit projects to source a specified percentage of components domestically. Foreign manufacturers face significant disadvantages without local production capabilities when competing for US contracts.
Hyundai Rotem secured a $664 million deal with LA Metro in January to supply 182 metro cars, with an option for 50 additional units. The manufacturer has maintained a US presence since 2006, delivering projects in California, Florida, Pennsylvania, Massachusetts, and Colorado.
The timing aligns with anticipated infrastructure investments ahead of the 2028 Olympics, though the company must prove it can execute quality production while meeting Buy America thresholds. Previous US projects experienced delays and quality issues, particularly with Boston’s transit authority, raising questions about operational readiness.
