Hungarian automotive industry company Rába said Tuesday, it signed a five-year supply agreement with US farm machinery giant John Deere worth more than $10 million a year.
Rába said it has been a direct supplier of John Deere for ten years, delivering complete axles and axle components. Order volume for John Deere has doubled in the past two years, but the new contract is expected to raise volume to a “double digit million US-Dollar annual turnover,” Rába said. The company noted that sales will also be helped by improved efficiency and an upturn on the US farm machinery market. Rába has expanded capacity by 50% and made technological improvements as a result of the order. Rába started supplying John Deere with tractor axles in 1998, and today it is the exclusive supplier of drive axles for the company’s heaviest model. (MTI-Econews)