Swedish Volvo Bus Corporation and Hungary's Rába Vehicles Holding signed a strategic cooperation agreement in Budapest on Tuesday. The agreement was concluded in Parliament by Volvo’s European Vice-President and Head of Business Development Stefan Guttman and Rába's President and Chief Executive István Pintér.
In his speech at the event, State Secretary Péter Szijjártó said that the agreement paves the way for the production of premium standard, modern buses in Hungary using state-of-the-art technology and while fully offsetting imported content.
Hungary has become one of the hubs of Europe’s car manufacturing: in addition to the present agreement, the latest expansion of Audi will soon be completed in Győr, Opel is making further investments in Szentgotthárd and as a result of expansion by Mercedes, Kecskemét has become a car production centre.
State Secretary Szijjártó pointed out that the cooperation provides an opportunity for the Hungarian car industry’s SMEs to participate as suppliers and also results in new workplaces both at Rába and at Hungarian suppliers. He added that the cooperation strengthens Hungary’s position on foreign markets as brings a major increase in exports, while it also facilitates achieving another economic policy goal, namely Rába quickly becoming a regional multinational manufacturer.
Swedish Minister of Trade Ewa Björling said Hungary will benefit from the agreement. She pointed out that commercial relations are expanding continually: Swedish exports to Hungary have almost doubled in the past 10 years whereas imports from Hungary have tripled. Both countries would like improve competitiveness and the cooperation of these two successful firms will contribute to this.
In addition to Rába products, the contracting parties will support the products of other Hungarian firms and will initiate the gradual building of a supplier chain, which will be coordinated by Rába. The company will realise the necessary production capacity by improving existing infrastructure, István Pintér said. The contract specifies that Volvo imports will be offset entirely through the purchase of Hungarian goods, which will contribute to the expansion of Rába’s activities.
He also noted that the two companies have been cooperating for more than two decades, as the Győr-based firm supplies Volvo with chassis components to support the production of its premium trucks.
Stefan Guttman explained that the contract bears great importance for Volvo as it affords them the opportunity to enter the Hungarian market. Existing relations must be strengthened, and trade and industrial cooperation must be intensified, he said. Both firms produce high-quality goods which could be further developed within the framework of the agreement.
(Prime Minister’s Office)
