Rába further strengthened its financial basis in 2016. The reduced net loan allowed for the formulation and commencement of a strategic, medium-term development program.
In 2016 the company’s AGM already approved a high-value technology development and capacity expansion investment program to benefit the Axle Business Unit. The goal of the development is to improve the competitiveness of the manufacturing of the company’s key products, modernize technology, and increase the output volume together with an improved efficiency and quality.
In order to help finance development Rába made the above mentioned program into a HUF 12.4 billion project by including the other two business units, and submitted a successful application to the Hungarian Government’s investment support program for large companies. The financial support received varies by business unit and establishment, and is between 25 and 35 percent, amounting to HUF 3.2 billion at group level.
Alongside technology modernization the program includes the necessary infrastructure, logistics and equipment (gear) development, too. The first step along the implementation has already been taken by signing the contracts to purchase the needed equipment and tools.
Rába’s market share and position in the global automotive industry will be further strengthened through the technology development and capacity expansion investment program. After the completion of this development every second or third European heavy truck is planned to roll off the assembly lines on Rába-manufactured front axles.