The plant at Araraquara will be built on land owned by Hyundai-Rotem's Brazilian partner Iesa and will assemble LRVs, commuter trains and metro trains.

Hyundai-Rotem decided to build the plant after securing a contract last year to supply 30 EMUs to São Paulo commuter rail operator Paulista Metropolitan Trains Company (CPTM). The Korean company is also supplying 55 trains for the Salvador metro through concessionaire CCR and has also supplied the train fleet for São Paulo's metro Line 4.