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Hyundai Rotem Expands Its Global Ambitions
Hyundai Rotem Co., a leading train manufacturing subsidiary of South Korea’s Hyundai Motor Group, is making significant strides in the global defense market. While finalizing a second K2 tank export deal with the Polish government worth 9 trillion won ($6.7 billion), the company is now eyeing Romania as its next potential market. This move comes despite challenges in Romania’s tank acquisition program, which has faced delays due to recent political changes.
As of July 29, according to defense industry sources and foreign media, the Romanian government has not yet issued a formal tender for its tank replacement program. This initiative is a crucial part of Romania’s broader military modernization strategy. The country initially announced the plan in 2022, aiming to procure 300 new main battle tanks. However, the program remains stalled, with no official tender released.
Romania still operates approximately 160 T-55 tanks, originally developed in 1958 and widely used during the Soviet era. Among NATO member states, Romania is the only nation still operating this aging platform. In November 2023, Romania purchased 54 Abrams tanks from the United States, highlighting the urgency of upgrading its military equipment.
Despite these developments, Hyundai Rotem remains optimistic about its prospects in Romania. The company has already conducted a live-fire demonstration of the K2 tank in the country last year, positioning itself as a strong contender against Germany’s Leopard tank. However, political developments have slowed progress. A new administration was inaugurated following the presidential election in May, and the Romanian parliament subsequently cut funding for the tank replacement initiative.
“There is intense political friction between the ruling and opposition parties in Romania regarding defense procurement,” said a defense industry official. “The situation remains fluid and requires close observation.”
Hyundai Rotem and South Korean military officials are closely monitoring Romania’s budget discussions. “We’re currently watching developments unfold,” said a South Korean military official. “Depending on how the new budget is finalized, the climate may shift.”
The South Korean firm is taking a long-term approach to negotiations, emphasizing key advantages of South Korean defense manufacturing, including local production capabilities and rapid delivery timelines. “We’re promoting our product locally with the mindset that we are starting over from the beginning,” said a Hyundai Rotem representative.
While the tank procurement program remains on hold, other Romanian military modernization projects are progressing. On July 10, the Romanian government approved a new initiative to acquire infantry fighting vehicles (IFVs). The project will span eight years and involve five variants, including standard IFVs, command-and-control vehicles, and 120mm mortar carriers.
The contract calls for a total of 246 units, with Romania aiming to finalize the deal within 2025. Hanwha Aerospace has entered the bid with its Redback armored vehicle. Romania is already operating Hanwha’s K9 self-propelled howitzers and is currently building a domestic production facility for the K9 platform.
Despite recent delays, interest in the K2 tank remains strong in Romania. On July 18, Defense Romania reported that Romanian troops had participated in a four-week training program in South Korea involving both the K9 and K2 systems. The outlet noted that “the K2 tank is a perfect fit for the Romanian military.” This positive feedback underscores the potential for future collaboration between Hyundai Rotem and Romania.
