Stepping in front Rába Automotive Holding

STEPPING IN FRONT

With over 100 years of manufacturing experience, Rába Automotive Holding Plc is one of the largest Hungarian companies operating in the automotive industry. Having achieved international success with several key developments, the company exports almost all its products to three strategic market areas: the EU, US and CIS.

Based in Győr, western Hungary, today Rába Automotive Holding operates three business units: Rába Axle Ltd, Rába Automotive Components Ltd and Rába Vehicle Ltd.

In 2015 Rába’s Axle Business Unit contributed 49 per cent to the group’s overall sales revenue of HUF 46 billion in 2015. This sector embraces a wide range of industry related services, enabling Rába to offer complex industrial solutions for even the most demanding clients. Most products manufactured in this unit are for export, and traditionally its main market has been the US. However, in recent years thanks to the high quality of its products, sales have increased considerably in the EU and CIS countries too.

The company’s Components business unit has two operations: the Mor plant is the centre of up-to-date welding and pressing processes while the key technologies in the Sarvar plant are cutting and machining. This business unit primarily sells its products to international automotive companies operating in Hungary and in other EU countries.

The Vehicle business unit manufactures complete vehicles, automotive structures and chassis. It has been producing rolling bus chassis and high mobility military trucks that comply with special transportability and defence requirements as well as carrying out development and adaptation activities for these products. Its main long-term client has been the Hungarian Army. In addition to the military vehicles, the company supplies various categories of bus and earthmover chassis for its domestic and international partners. Furthermore, the strategic product portfolio of this business division is complemented by road vehicles suitable for public transport.

Export success

Among other international achievements, the S91 midibus developed in an international consortium of companies led by Rába has been an outstanding success. This vehicle, which has already performed well in multiple countries, has set off on a European debut

tour this year with its latest version. In recent years the midibus has produced excellent results in all tests, meeting the European Union’s strictest emissions guidelines.

Feedback on the operating experience of this bus has all been positive: equipped with a modern passenger comfort system, the bus can cope with even the most extreme conditions. Trends show an increasing demand for such vehicles in Europe, therefore the S91 has excellent prospects on the international market.

Targeting overseas

The company has already made a successful entry to the overseas market: since the end of 2015 it has been delivering axles for diesel buses and trolleys for DINA, one of Mexico’s largest bus manufacturers.

During the joint technical development, Rába developed the disc brake axles that can be used in diesel as well as in trolleybuses. It has already delivered the prototype axles for its partner’s Brighter diesel type and Ridder type trolley buses, and supported DINA with on-site axle application engineering. Once the testing phase is finished, new opportunities will be created for serial deliveries under a long-term agreement.

Its extensive experience in different vehicle applications, coupled with a deep understanding of customer needs, has helped Rába to establish a footprint on the promising Egyptian market. Thanks to a new agreement made in 2015, Rába manufactured complete axle sets for 145 buses for its Egyptian partner, EAMCO. The axles will serve the 12 metre-long air conditioned intercity buses developed by EAMCO and running mostly on the streets of Cairo and Alexandria.

Ongoing cooperation with Claas

Last year, Rába expanded its range of products supplied to Claas, one of the world’s leading agricultural vehicle manufacturers. The five-year agreement is worth nearly €2 million.

The cooperation between Rába and Claas dates back 21 years. During this time the Hungarian company has established a close partnership with Claas’s German unit, and developed a complete axle for its Xerion type engine. The new order came from the French unit of the agricultural vehicle manufacturer and will help to increase Rába’s presence on the market, broaden its product portfolio and strengthen its relationship with this major global player. The new product, a transfer box, is the result of a joint development with Claas.

Bright vision

The Rába group wrapped up Q12016 with sales of more than HUF 9.5 billion. The company partially set off the volatility of the markets and the effects of the cyclical sales of some of its products in the expanding European truck segment, domestic component sales and export of metal structures.

“Last year was a milestone in the history of Rába: having achieved the sufficient financial leeway, developments of strategic significance could be commenced earlier than planned. Improving competitiveness and efficiency, succeeding in the international markets, creating value for the stockowners – these principles guide our company in its quest to achieve our strategic goals,” emphasised István Pintér, chairman and CEO of Rába Atumotive Holding Plc. “The first important step is a large-scale modernisation investment, to which the AGM has given its consent. After the implementation of the technology and capacity development programme our market share and position in the global automotive industry will further strengthen and if everything goes as planned every second or third European heavy truck will roll off the assembly lines on Rába manufactured front axles.” n