Rába strengthens position on European car market
A recently concluded agreement between Rába and German Kirchhoff Group carries a strategic significance for the Hungarian automotive company, whereby Rába supplies Western European passenger cars with 600 000 pieces of pressed components, reported the company.
The new contract generates annual sales revenue of HUF 500 million for the company’s Components Business Unit based in Mór, Hungary.
The Parties outlined the details of the cooperation in a long term agreement signed for five years. The companies started technical preparatory negotiations in 2011, and the agreement was preceded by a comprehensive audit of competence of the Mór unit by Kirchhoff according to the Western European automotive standards, said Rába in a statement.
Following a successful audit and production planning, Rába commenced supplying pressed car body parts. Full supply capacity is expected to be reached this year.
The Mór-based unit of the Components Business Unit entered the Western European passenger car market that sets high-quality requirements through successful business development efforts of previous years and via cooperation with another world-class German company. The recently concluded contract secures new, important supplier positions for the Components Business Unit.
The strategic significance of the agreement is enhanced by the fact that through cooperation with the Kirchhoff Group, Rába’s Mór based unit widened its clientele with a view to diversity. In accordance with its strategic goals the Components Business Unit strengthened its Western European connections as a supplier and increased the sales of key products, i.e. processed metal parts.
Rába’s goal is to establish stable, long term cooperation with its new partner and achieve further growth through the utilization of the company’s proven technology and capacity, reported the company.
