Hyundai Rotem to Build $1.5 Billion Train Manufacturing Plant in Benguerir

Casablanca – South Korean rail manufacturer Hyundai Rotem has selected Benguerir as the site for its future train production plant in Morocco, in a project valued at $1.5 billion that is expected to mark a significant step in the country’s industrial and rail ambitions.

While the announcement dates back to 2025, Moroccan media outlets have recently brought it back into focus, highlighting the scale and strategic weight of the agreement.

The Regional Investment Center of Marrakech-Safi confirmed its support for the industrial rollout, describing the move as part of a broader strategy to strengthen Morocco’s national railway ecosystem.

In an interview with The Korea Times, Morocco’s ambassador to South Korea, Chafik Rachadi, pointed to the agreement as evidence of Morocco’s growing appeal to international investors. “The recent $1.5 billion contract between Hyundai Rotem and the Moroccan national railway operator is a testament to the country’s attractiveness as an investment destination,” Rachadi said.

The production unit will be established within the railway cluster of the National Railway Office (ONCF) in the province of Rhamna, positioning Benguerir as a new focal point for advanced rail manufacturing.

According to official details, the facility will specialize in the production of multi-energy trains. The project is designed to deepen local integration within the railway value chain while enabling technology transfer and industrial know-how.

The plant is expected to create a significant number of qualified jobs, contributing to the region’s high-value-added industrial base.

“There were competitors from all over the world. Hyundai Rotem’s offer was strong. It will not only be about delivering trains — there will be technology transfer, factory construction and training programs,” Rachadi told the Korean news outlet. “The manufacturing will primarily involve local workers, ensuring that the project benefits Morocco’s economy.”

Institutional coordination is already underway to facilitate the project. The Regional Investment Center is overseeing efforts to align public stakeholders, secure the necessary land and streamline regulatory procedures tied to permits and authorizations.

Officials describe the approach as structured and aimed at ensuring the project advances without administrative bottlenecks.

Hyundai Rotem intends to position the Benguerir site as a regional industrial hub serving both African and European markets. The company’s commitment to Morocco is anchored in a major contract for the supply of 110 double-deck electric trains to the ONCF.

The agreement, valued at nearly $1.5 billion, underscores the scale of the partnership and its role in expanding Morocco’s transport infrastructure.

The investment adds to Morocco’s ongoing push to consolidate its position as an emerging industrial platform, particularly in sectors requiring technical expertise and advanced manufacturing capabilities.

In his interview with the Korean outlet, Rachadi described Morocco as a key entry point to Africa. “As a strategic gateway to Africa, Morocco stands out as a leader in sustainable development, renewable energy, and innovation,” he said, stressing that the country’s political and economic stability continues to play a central role in drawing foreign investment and supporting sustainable growth.

“Together, we can build a future of shared prosperity and mutual growth,” he added, encouraging Korean investors, companies, students, and tourists to consider opportunities available in Morocco.

With the establishment of the Benguerir facility, the country strengthens its foothold in rail production while reinforcing its ambition to develop a more integrated and competitive transport industry.

Construction timelines and operational milestones have not yet been publicly detailed. However, the confirmation of the site and institutional backing signals that preparations are moving forward, placing Benguerir at the center of one of the most significant rail-related industrial projects announced in Morocco this year.