Rába Nyrt, a Hungarian maker of vehicle parts and military trucks, won an order to supply car seats to Suzuki Motor Corp.'s local unit worth €18.4 mln ($23.8 mln).
Rába will supply the seats to the Japanese carmaker's local unit for Ft 4.6 million a year over the next four years through Magyar Toyo Seat Kft., a Suzuki venture, Győr, western Hungary-based Rába said in a stock exchange statement today. Rába, which supplies buyers including ArvinMeritor Inc., is focusing its sales efforts on Hungary, former Soviet Union states and other European countries after a decline in US demand. It last signed a contract worth $29.4 million to supply US partner Marmon-Herrington with axles and parts in 2007, and expects that agreement to help solidify its position on the US market. The company said last August it won an order worth Ft 2.6 billion forint from Suzuki to produce seat covers and seat foam. The shares rose 4% to a four-and-a-half-year high of 1,279 forint at 12:26 p.m. in Budapest. They have more than doubled in the past year, valuing Rába at Ft 17.2 billion. (Bloomberg)