Hyundai Rotem speeds up push for combined defense and rail package deal in Romania

Yongbae Lee, CEO of Hyundai Rotem, recently met with Romania’s transport minister, fueling expectations for a combined "defense and rail package" contract. Romania has been consistently mentioned as a potential buyer of Hyundai Rotem’s K2 Black Panther main battle tank this year. At the same time, the country is strongly committed to modernizing its rail network, leading analysts to see Hyundai Rotem, with its global defense and rail technologies, as a strong contender to become Romania’s project partner.
On the 11th (local time), Romanian Transport Minister Ciprian Șerban announced on his Facebook page that he had held talks with Hyundai Rotem CEO Yongbae Lee. He said, "Our cooperation model with Hyundai Rotem will develop a competitive rail industry through local facilities," adding, "It will bring major benefits to Romania’s future, including accelerating the shift to zero-emission transport through hydrogen-based solutions."
The core of the discussions was the DACIA project. The project focuses on several key areas within Romania: localization of rail vehicle production, development of hydrogen-powered trains, setting phased plans for future high-speed rail construction, and utilizing robust export credit financing mechanisms.
Minister Șerban plans to promote local production and technology transfer in cooperation with Hyundai Rotem to advance Romania’s rail industry. Through this, the government expects to create sustainable jobs and train a skilled technical workforce.
In the longer term, Romania aims to strengthen industrial autonomy through public–private partnerships and turn the country into a European hub for rail production and innovation with strong export potential. "The Romanian government will continue to focus on modernizing and developing rail infrastructure and on enhancing the country’s capacity to produce rolling stock," he emphasized.
Industry observers say the meeting between CEO Lee and Minister Șerban has heightened expectations that Romania could award Hyundai Rotem a bundled contract covering both defense and rail projects.
Romania has long been cited as a country that may introduce Hyundai Rotem’s K2 Black Panther main battle tank. The Romanian military is considering acquiring 216 main battle tanks and 76 support vehicles. The total project cost is estimated at 6.5 billion euros, or about 11.17 trillion won. Local reports expect a supplier to be selected in the first half of this year. Hyundai Rotem is said to be competing with companies such as Germany’s Rheinmetall, which operates the Leopard 2 tank.
As Romania expands its weapons imports, the need for rail infrastructure to transport this equipment is also growing, which analysts say increases the likelihood of a package deal. Romania currently plans to invest a total of 39.7 billion euros, or about 59 trillion won, in 11 projects, including the construction, extension, and upgrading of railways and subways.
Hyundai Rotem, which operates both defense and rail businesses, has recently gained momentum in winning orders by offering "local production" as a key proposal. Its framework agreement for K2 exports with Peru, worth about 3 trillion won, includes a plan for joint production in Peru from 2029 to 2040. Local production also played a major role in the Sydney NIF commuter train project and the Queensland Train Manufacturing Program (QTMP) that Hyundai Rotem won in Australia.
A Hyundai Rotem official said, "By supplying the K2 tank, we can help strengthen the defense capabilities of client countries, while our high-speed trains and EMUs can contribute to improving their transport infrastructure." The official added, "We can provide integrated solutions in both defense and transport, which our customers need, and maximize customer value through fast delivery and localization."
hoya0222@fnnews.com Kim Dong-ho Reporter