KOREAN rolling stock manufacturer Hyundai Rotem has signed a detailed technology transfer and localisation agreement for railway rolling stock production with Vietnamese conglomerate Thaco Group, building on a memorandum of understanding (MoU) signed by the companies last August.
The latest accord includes technology transfer, workforce training, local component manufacturing, and the production of locomotives and multiple units in Vietnam.
According to local media outlet The Investor, the partnership is expected to help Thaco master railway manufacturing technologies, increase localisation rates, and support the government’s strategy to develop a modern rail industry.
In April the companies signed a contract to supply 162 cars for Ho Chi Minh City metro Line 2. Under the contract, Hyundai will manufacture six complete cars in Korea and provide 156 complete knock-down (CKD) kits, enabling Thaco to produce components domestically and assemble complete trains in Vietnam.
Under the latest agreement, Hyundai will transfer product designs, technical documentation, manufacturing processes, and quality-management systems to Thaco. The company will also train Thaco engineers and managers in Korea and deploy specialists to Vietnam to support manufacturing, assembly, testing, and quality-control activities.
Manufacturing complex
To support the localisation strategy, Thaco has invested in a 320ha railway and multi-purpose mechanical manufacturing complex in Ho Chi Minh City. The integrated manufacturing facility is equipped with advanced automation and smart production technologies and includes an aluminium car-body manufacturing centre, equipped with high-pressure extrusion lines of up to 10,000 tonnes. There is also a precision-machining plant capable of processing large components up to 25m long, an automated welding centre utilising intelligent robotic welding systems, and locomotive and multiple unit assembly plants.
Thaco is also investing in rail infrastructure. Last month, the company announced it would provide Dong 265.9 trillion ($US 10.1bn) for the construction of Vietnam’s first privately-funded commuter line. This 103km line will connect the city of Da Nang in the central coastal region of Vietnam with Hoi An, Tam Ky, the Chu Lai economic zone and Da Nang International Airport.
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