China advances in the Brazilian railway industry, takes over an old train factory that had been idle since 2019 in the interior of São Paulo, begins hiring, and takes on a contract worth R$ 3.1 billion to produce 44 trains for the São Paulo metro.

Written by Noel BudeguerPublished on 20/07/2026 at 13:14

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The former railway unit of Araraquara begins to regain activity after years without regular production. The project plans for 264 cars distributed across 44 trains of six carriages, capacity for up to 1,800 passengers per unit, with first deliveries expected by 2027.

China is back on track.

For years, a factory designed to produce up to 200 railway cars per year remained practically silent in the interior of São Paulo. Without new orders since 2019, the warehouses lost workers, production, and relevance.

The space left by the South Korean industry was not occupied by a Brazilian manufacturer. Who arrived was CRRC, a giant state-owned company controlled by the Chinese government, which will transform the former Hyundai Rotem unit into its main production base in the country.

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The company has already started hiring workers and is preparing the lines that will be used in the manufacturing of 44 trains for the São Paulo Metro. The contract is worth R$ 3.104 billion and involves 264 railway cars.

Each composition will be able to transport up to 1,800 passengers. The maximum speed will be 100 km/h.

A strategic structure was left empty and opened space for China

The Araraquara factory, which had no regular production since 2019, now integrates the expansion of the Chinese state-owned CRRC in Brazil and will be used in the manufacturing of 44 trains, totaling 264 railway cars for the São Paulo Metro. Source: CRRC/Disclosure.

The Araraquara factory was inaugurated in March 2016 with an estimated investment of R$ 100 million. Installed on a plot of approximately 150,000 square meters, it was created to meet large railway orders in Brazil.

It was there that Hyundai Rotem produced units of the CPTM Series 9500. The last train of this contract was completed in February 2019.

After that, the absence of new projects interrupted regular industrial activity. A modern plant, with specialized labor and capacity to manufacture hundreds of cars per year, ceased to fulfill the role for which it had been built.

This void paved the way for CRRC.

The first information released by the São Paulo Government indicated that the Chinese company would lease part of the facilities and make an initial investment of around R$ 50 million.

Hiring began before the machines

The installation of CRRC was marked by a symbolic ceremony in March 2026. At that time, according to the City Hall of Araraquara, the production lines were not yet completed.

Even without the first trains on the assembly line, the company was already forming its team.

Opportunities were announced for engineers, electricians, mechanics, assemblers, logistics professionals, and purchasing specialists. One of the selection rounds gathered 82 positions destined for Araraquara.

Out of this total, 44 were for mechanical assemblers and 32 for electrical technicians.

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The creation of jobs brings relief to a city that saw the factory lose activity. At the same time, it exposes an uncomfortable situation: Brazilian industrial jobs now depend on a foreign state-owned company to exist again.

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Billion-dollar contract puts three lines in the hands of the new factory

The 44 trains will be destined for the 1-Blue, 2-Green, and 3-Red lines of the São Paulo Metro. Part of the new fleet will be essential to support the expansion of the 2-Green Line towards Penha.

The first deliveries are expected in April or May 2027.

The vehicles will have six interconnected cars, air conditioning, wider doors, USB ports, security cameras, LED lighting, and electronic panels.

They will also be prepared for fully automated operation in the GoA4 standard. In this system, the train can operate without the permanent presence of a conductor.

The technology represents modernization, but it also increases the influence of CRRC over an infrastructure used daily by millions of passengers.

Araraquara could become a Chinese base for all of South America

Brazilian authorities and CRRC representatives during the symbolic inauguration of the operation in Araraquara, where the Chinese company took over the old railway factory and began hiring before the start of industrial activities, scheduled for the second half. The agenda also marked the announcement of R$ 5.6 billion in BNDES financing for urban mobility projects. Source: Araraquara City Hall.

The movement does not end with the 44 trains.

CRRC stated that it intends to transform Araraquara into a hub capable of serving other Brazilian projects and, in the future, South American countries. A Chinese supplier of doors and railway components also announced plans to operate in the city.

The municipality created tax incentives to attract manufacturers and suppliers. Among the counterparts, at least 50% of the employees of the benefited companies must reside in Araraquara.

The factory is once again generating jobs and boosting a weakened production chain. But the reactivation raises a question that cannot be ignored.

Brazil allowed a strategic railway structure to go years without orders and now relies on a Chinese state-owned company to make it operational again. The story is not just about 44 trains. It shows how industrial abandonment can turn national factories into entry points for foreign powers.

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China advances in the Brazilian railway industry, takes over an old train factory that had been idle since 2019 in the interior of São Paulo, begins hiring, and takes on a contract worth R$ 3.1 billion to produce 44 trains for the São Paulo metro.

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