Gripen offset takes off
Monday, May 30, 2005, 00:00
New offset agreements totaling Euro 52 million have been approved by the Hungarian government this year as part of the 14-year Gripen offset program, the Swedish company announced today. As a result, the total offset value realized since the beginning of the program four years ago has risen to Euro 360 million. In line with an agreement signed by the Economy and Transport Ministry and Gripen, and modified in 2003, Hungary will lease 14 fighter planes for 10 years, while Gripen undertakes to spend 110% of the lease value, or Ft 191 billion in Hungary in the form of new investments, receiving exported goods from Hungary, or employing Hungarian subcontractors within 14 years of the agreement. Direct investment will account for 32% of this, or Ft 55.7 billion. Gripen has to meet 50% of these obligations in the first 8 years of the program.