With Hyundai Rotem and CNR Changchun, Springfield now has two chances for MBTA work
By Jim Kinney | jkinney@repub.com
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on October 10, 2014 at 5:00 PM, updated October 10, 2014 at 7:11 PM
SPRINGFIELD — Hyundai Rotem's announcement Friday that it will build a factory at 180 Progress Ave. in Springfield if it is selected to build $1.5 billion worth of subway cars for the MBTA Red and Orange lines gives the city two horses in the race.
CNR Changchun Railway Vehicles announced earlier this year that if the MBTA picks its proposal for the Boston subway cars, Changchun would locate here on property it has agreed to purchase: the 40-acre site of the former Westinghouse factory on Page Boulevard in East Springfield.
Andrew Hyer, marketing/business development manager at Hyundai Rotem USA, said Friday that it plans a $30 million assembly plant that could hire 150 to 200 workers. If Hyundai is selected, construction would begin in late 2015 and production in 2016. Of the $30 million, $15 million would be spent with local contractors and $15 on equipment brought in.
Hyundai Rotem is from South Korea. Changchun is Chinese.
Hyer and his colleagues have spent months working with local officials.
"I'm very pleased that we have two world-class companies that are in competition for the MBTA bid and have found that Springfield is their top spot," Springfield Mayor Domenic J. Sarno said Friday."It brings a lot of good paying precision machining jobs, a lot of opportunity and a growing tax base."
There are a number of other bidders. But no others are interested in Springfield, said Allan W. Blair, president and CEO of the Economic Development Council of Western Massachusetts.
Blair expects the MBTA to make a decision very soon, probably in November.
"It certainly is good for Springfield to have two contenders interested in putting their facility here. But only one can win, " Blair said. "It speaks well to the city's location. It also speaks well to the ability of the company to source employees. They are going to need a lot of tradespeople."
Hyer said the workforce and the worker-training capabilities in Springfield attracted his company here. He's already been meeting with Springfield Technical Community College, which will host a news conference Thursday, Oct. 16.
The Hyundai site at 180 Progress Ave. is a 9.4-acre properety now occupied by a 122,000-square-foot warehouse offered for lease through R. J. Greeley Co. and once home to trucking company Sullivan Consolidation. Hyer said Hyundai has an agreement to buy the property.
The T needs at least 226 cars. Of those, 152 would be Orange Line cars, replacing the entire fleet of 120, and 74 would be Red Line cars, with an option to increase the fleet to 132. The 43-year-old Red Line cars and 31-year-old Orange Line cars are due for replacement.
The state went without federal money for the cars so it could require that final assembly be done in Massachusetts.
Hyundai Rotem already has an assembly plant in Philadelphia, built there because that city's SEPTA had a similar local-assembly requirement for Silver Line cars. Hyundai was delayed by 2½ years delivering cars for MBTA's passenger rail, the purple-colored trains.
"They are all delivered now," Hyer said. "Some are in service and some have been accepted for testing. there was a high hurdle, but we got over it."
If built, the $50 million Changchun factory would employ 150 to 300 workers and serve as Changchun's entry into the North American market for rail cars. The company has no North American operations now.