Hungarian-Turkish JV Formed to Produce Gidran Armored Vehicles

The Rába Jármű Ltd., a subsidiary of Rába Járműipari Holding Nyrt., and Nurol Makina Hungary Ltd., the Hungarian arm of Turkish company Nurol Makina ve Sanayi A.S., officially inked an agreement on Monday, December 18, to form the Hungarian–Turkish joint venture named Gidran Armored Vehicles Ltd.

The announcement was made by the Győr-based vehicle producer on the Budapest Stock Exchange (BSE) website.

The primary objective of the joint venture is to enhance the capacity for assembling and producing the four-wheel-drive Gidran armored vehicles at the Rába group facilities in Hungary. The focus is on achieving maximum Hungarian added value, utilizing Hungarian suppliers, and catering primarily to the needs of the Hungarian Defence Forces.

The syndicate agreement for the joint venture received official endorsements from key stakeholders, including Rába Nyrt., Nurol Makina ve Sanayi A.S., N7 Holding Ltd., and the Hungarian Ministry of Defence.

The Rába Nyrt. entered into a memorandum of understanding with N7 Holding Ltd., Nurol Makina ve Sanayi A.S., and its Hungarian subsidiary on October 31. This initial understanding paved the way for exploring the establishment of a joint venture with a focus on manufacturing cooperation. The successful negotiations and agreement on partnership details were subsequently concluded.

Rába Járműipari Holding Nyrt., the parent company of Rába Jármű Ltd., reported a robust financial performance in the first three quarters of the year, boasting a revenue of HUF 56 billion and a net income of HUF 1.6 billion. The business portfolio of Rába Nyrt. comprises four interconnected branches: undercarriage, component, vehicle, and engine. Notably, the undercarriage segment stands out as the largest member company.

Shares of Rába Nyrt. are listed in the premium category on the BSE, with Monday's closing price quoted at HUF 1495. Over the past year, the share price reached a high of HUF 1575 and a low of HUF 1105.

Hungary's Defense Minister, Kristóf Szalay-Bobrovniczky, revealed plans to start Gidrán combat vehicle production in Győr, Hungary, through a partnership with Turkish company Nurol Makina during a press conference on October 31.

The Gidrán 4x4 Armored Combat Vehicle is designed as a versatile platform to address the operational needs of military units and security forces in various environments, encompassing urban and rural settings. Its design and substantial payload capacity allow for customization to adapt to diverse mission requirements.

Key features of the Gidrán include the capability to transport up to 9 personnel, ergonomic design, integration options for manual or Remote Weapon Station systems, gunports on both sides, run-flat tires, facilitated embarking and disembarking operations, interior gunpowder smoke evacuation fans, built-in radio infrastructure, and Mine Resistant Ambush Protected (MRAP) Level Ballistic and Mine Protection. This level of protection is intended to withstand mines, improvised explosive devices (IEDs), and lateral blasts.

The integration process of Gidrán vehicles, involving the installation of tactical, radio, electronic equipment, and sensors, is currently taking place in Kaposvár, Hungary, and will continue at that location.