Rába Axle Ltd. has signed an agreement valid for 3 years, according to which the company delivers axle components to one of the world’s leading automotive company to the value of nearly 25 million Euros. Thanks to the contract concluded with the major truck maker Rába can strengthen its position on the European market in accordance with its strategic goal. As a result of this new cooperation, altogether 100,000 new trucks will roll off the assembly lines annually in Europe on products made by Rába.

The Győr-based Rába Axle Ltd. has further strengthened its position in the European truck market by obtaining new businesses. Thanks to the agreement stipulated with Scania, the volume supplied will significantly grow, which could be a determinant factor in the future in terms of European growth.

Rába Axle Ltd announced today the signing of a 5-year strategic agreement with Marmon-Herrington setting key long-term strategic growth initiatives tied to product and market development in the specialty vehicle axle and drive train markets.

Rába Development Institute has started its operation

Within the framework of its newly established Rába Development Institute Raba has recently launched a comprehensive innovation programme with a budget of more than HUF 1.5 billion. As a result of the project axle production volume of 2009 is expected to double by 2015 at the Győr-based company. The three-year long programme is cofunded by the European Union.

Rába (based in Győr, Hungary) has developed a product family involving more than 200 types of different off-road axle models named as Rába MAXS. The axle models developed for trucks with off-road capabilities enable Rába – despite the recession in the automotive market – to efficiently expand its market. The Rába MAXS™ double reduction modular axle system (a protected trade mark in the EU) can be reliably applied when carrying extraordinary dynamic loads, as well.

F.S. Fehrer Automotive GmbH and Raba Automotive Holding Plc. formed a joint venture in the foaming plant of Rába’s Components Business Unit in Hungary. Fehrer- Rába Automotive Ltd starts operating in October, 2009.The cooperation enables both partners to meet the requirements of the OEMS with regards to close-to-the-customer production and high quality. Fehrer is the majority holder with 70 per cent, while Raba holds 30 per cent of the shares.

Raba Axle Ltd. and the German Claas Selbstfahrende Erntemaschienen GmbH signed a basic supply agreement valid until 30. 09. 2009 (with extension options). As a result of the actually signed contact the expected volume of sales can reach a value of 5 million Euros.

With the actually signed long-term contract Rába made again an important strategic step in the field of selling products with high added value. Rába has been a direct supplier of John Deere already for 10 years with complete axles and axle components. The delivered volume has been doubled in the last two years, and during the following years it is expected to grow to a double digit million US-Dollar annual turnover.

According to the by Rába announced strategy the Foundry plant – which was a part of the axle business unit – operates as a Joint Venture since 1^st January 2008. The aim of this restructuring is a significant expansion of the capacity and the technological development of the Foundry plant.

The partner of the JV is the M.BUSCH GmbH & Co.KG, member of BPW Group. Rába owns 25,5% of the new JV.

Hungarian Rába Axle Manufacturing Ltd. and the bus division of GAZ Group signed a general supply agreement for the period of 2007-2010, and according to this the Győr corporated company calculates width a yearly income of 13,1 million EUR from this partner. Rába sales front axle I beams and components on the strategic CIS market, where one of its most important partners still are LiAZ, PAZ, and KAAZ, members of the bus division of GAZ Group.