Innovation & Technology

Military production starts in Hungary

The installation of radio and electronic equipment for 40 Gidrán-type combat vehicles manufactured in Turkey will start soon in Kaposvár, Hungary.

Gáspár Maróth, the government commissioner responsible for defense development, said that the combat vehicle, of which the Hungarian Defense Forces have already purchased 10 and plan to purchase several hundred more, is an emblematic development of the cutting-edge Turkish defense industry. His words came at a workshop at the Kaposvár Smart Industry Science and Innovation Park (TIPK) of Óbuda University.

Also at the event, Minister of Innovation and Technology László Palkovics said that TIPK, to be built in Kaposvár, will also carry out military research and development activities, which bodes well for the future of the military industry here.     

He pointed out that the labor market has shifted towards higher value-added activities, which has been helped by the restructuring of the training system in Hungary.     

The growth rate of investment in Hungary was “in the EU TOP 3” between 2015 and 2019, which is important because “investment today is growth for the future,” he said. The minister said Hungary was a leader in innovation, with the highest increase in the number of people working in research and development in the EU since 2010. This is due to the high level of support for R&D as a share of GDP provided by the Hungarian government, he added.  

Palkovics stressed that the government wants to ensure that by 2030:

  • 70 percent of buses on the road are domestically produced 
  • 7 out of 10 railway vehicles are made in Hungarian factories
  • the Hungarian defense industry can meet the needs of the Hungarian defense forces self-sufficiently
  • the healthcare industry can provide vaccines against various viruses at a similar level    

Mihály Varga, Minister of Finance and Chairman of the Board of Trustees of the Rudolf Kalman Foundation for Óbuda University, said in his welcome speech that it is of paramount importance for the country to have a stable economy, to be prepared for the most unexpected situations, to have a strong defense and healthcare industry and to be self-sufficient in as many respects as possible. He said that the pandemic and the war have shown that regaining these capabilities was of paramount importance and would also contribute to the country’s competitiveness. TIPK and the military industry in Kaposvár will serve all these objectives.    

Last spring, Gáspár Maróth announced that the construction of the Rheinmetall Hungary Zrt., a military factory in Kaposvár, would begin in the autumn, with the aim of producing at least 100 military vehicles a year in the Somogy County seat.    

And last May, it was announced that the Kaposvár municipality and Óbuda University are planning to build a science and innovation park in Kaposvár. According to the information at the time, four halls will be built and arranged on a six-hectare site in the city’s eastern industrial park as part of the development, with HUF 15 billion in government funding.

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