Rotem has annual sales of approximately $1 billion and has delivered more than 33,000 railcars in Korea, Hong Kong, India, the Phillipines, Taiwan, Turkey and Alaska. It will use the Naval Yard building for final assembly, fit-out and testing of railcars and for the production of transit railcar interior materials. It is expected to employ 400 at the facility.

The Naval Yard lease represents the company's entry into the US mainland market with a goal of becoming the leading US producer of railcars. Toward that end, Rotem also plans to establish US corporate headquarters in Philadelphia.

PIDC, the city's commerce department and the state provided an incentive package to bring Rotem here. Along with the locally based International Visitors Council, these groups developed a Sister City relationship between Incheon, South Korea, and Philadelphia that is also considered a factor in clinching the Rotem deal.