Japanese conglomerate Hitachi opens $100M railcar factory in US

By Berk Kutay Gokmen

ISTANBUL (AA) - Japanese conglomerate Hitachi opened a $100 million factory in the eastern US state of Maryland on Monday, with the new plant capable of producing 20 railcars per month, the Kyodo News agency reported.

Hitachi, according to the agency, said that the Hagerstown facility uses artificial intelligence (AI) and other cutting-edge technologies for quality checks in hard-to-reach areas. The plant was set up to supply railcar fleets to customers across North America.

The carbon-neutral plant, which spans approximately 29,000 square meters (312,153 square feet), is expected to generate up to 1,300 jobs and contribute $350 million annually to the region, according to Hitachi. It will initially focus on producing railcars for metro operators in Washington, Baltimore, and Philadelphia.

Of the total investment, more than $30 million has been allocated by Hitachi for digital technologies at the factory, which serves as the company's flagship train production hub in North America.

"This is a very significant step toward growth in the United States," Hitachi President Toshiaki Tokunaga said at a press conference at the plant.

Although some sectors have been affected by US President Donald Trump's substantial tariffs, Tokunaga noted that the tariffs' direct impact on Hitachi's railway business is minimal, as the company is focused on "local production for local consumption."

However, he pointed out that the US tariffs have prompted companies to reduce investment in the development of digital assets. "We are concerned about the impact tariffs will have on the global economy," he added.

Last Thursday, Trump signed an executive order to implement a sweeping trade agreement with Japan, including establishing a baseline 15% tariff on nearly all Japanese imports, which also cleared the way for an agreement involving $550 billion in Japanese investment in US projects.