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Hungary Defense Ministry prepares Raba order worth billions of forints

Hungary's Ministry of Defense is preparing to give Hungarian vehicle maker Rába an order worth several billion forints this year, Defense Minister Csaba Hende told journalists in Győr, where the company is based, on Friday.

This year's order from Rába will be bigger than last year's, Hende said.

The Defense Ministry wants to continue its cooperation with Rába within the framework of a vehicle procurement program that has lasted for years, he said, speaking after the inauguration of a technology centre and experimental testing centre at Rába's base.

Rába chairman-CEO István Pintér said the first phase of the experimental testing centre had been completed. In the second phase, to take place in the first half of next year, Rába will add vibration and sound testing to the centre's capacity. In the third phase, in 2012 and 2013, Rába will expand testing to support planning and production of gears in axles, he added.

The entire cost of the project is HUF 1.6 billion and one-third of this is covered by European Union and state grant money, Pintér said.