TEHRAN - South Korean Hyundai Rotem signed a deal worth 720 million euro in Tehran on Saturday on building 450 railbuses in Iran.

The deal was signed between the South Korean company, the Iranian Rail Industries Development Company, and the Islamic Republic of Iran Railways, known as RAI.

The duration of the contract will be 78 months and the first railbus will be operational 18 months after the deal takes effect, Tasnim news agency quoted the RAI managing director Saeed Mohammadzadeh as saying.

As per the agreement, one third of the railbuses will be constructed in Iran and the rest by the Korean side.

HJ/MG