South Korea’s Hyundai Rotem has signed an $856m contract with Iran Railways for the manufacture and supply of 450 suburban rail wagons.

According to a local media report, Hyundai Rotem is to form a consortium with a local partner to manufacture the wagons in Iran.

MEED understands the South Korean firm will finance the project.

The contract is to be executed within six years and a half.

The contract is estimated to create 4,700 direct and indirect jobs in Iran.

A previous contract for Hyundai Rotem to supply 150 train cars to Iran, which was put on hold in 2010 due to the sanctions, will be merged with the new contract.

It is the firm’s second major signed contract in the Mena region during the year. In July, it won a $377.5m contract for the supply of 256 metro cars for Egypt’s Cairo Metro Line 3.