Budapest’s ongoing programme of military and defence industrial development is aimed at transforming the Hungarian army – as rapidly and as radically as possible – into a world-class fighting force, eminently (and obviously, to would-be aggressors) capable of addressing and resolving security challenges in the Euro-Atlantic region. That ambition must clearly have taken on starkly fresh importance since Putin’s February invasion of Ukraine. With the myriad concerns, rumours and fears in circulation of ‘spillover’ effects of the current conflict – even though, at this particular juncture, it does not all seem to be going the Kremlin’s way – Hungarian officials and military personnel must be examining and re-examining their earlier assumptions on an almost daily basis. “As part of its commitment to NATO, Hungary is replacing its heavy ground forces equipment. Following the tanks and artillery, it is now the turn of the infantry combat vehicles, which form the backbone of the capabilities set. As the most advanced system of its kind, the Lynx has demonstrated its suitability for a central role in the Army’s capabilities spectrum for decades to come. In keeping with earlier promises by the Hungarian government to enhance the nation’s armed forces, this cooperative endeavour extends far beyond the modernization of military technology. Partnering with a major European corporation will result in the modernization of our defence industry and thus to the expansion of our industrial portfolio,” said Minister Palkovics and Commissioner Maróth at the time of the announcement. Armin Papperger, Chairman of Rheinmetall’s Executive Board, stressed the forward-looking leadership that Hungary has demonstrated in this decision, saying “We’re very proud to be able to make an important contribution to the sustained expansion of Hungary’s defence technology capabilities in cooperation with local industry. We look forward to working together with our Hungarian friends and partners, and will do everything in our power to assure the long-term success of this venture”. The actual procurement of the vehicles (as opposed to the agreement encompassing the co-production elements) came the following month. Hungary – a name evocative of a rich history, of Tokaï, of goulash – but rarely one that springs immediately to mind when speaking of the global defence industry. Yet the Hungarian government’s ambitious, well-founded and far-reaching modernisation plan for its armed forces, the sophistication of its well-developed industry and the central nature of its location and excellent transportation links for a burgeoning Central and Eastern European market have attracted the attention of major defence contractors from around the globe. Even the briefest of examinations reveals some surprising facts. The most obvious example of the manner in which the defence industrial landscape in Hungary has changed in recent years came in August 2020. As Rheinmetall announced at the time, the Hungarian government signed an agreement in Germany that month that marked the formal start of a massive programme to modernise the nation’s military capabilities – and its defence industry potential – at a value of over €2 billion ($2.3 billion). Announced by László Palkovics, Hungary’s Minister of Innovation and Technology, and Gáspár Maróth, Commissioner for Defence Development, Rheinmetall subsequently embarked on a programme to establish both a joint venture and a production facility in Hungary to manufacture the Lynx infantry fighting vehicle (IFV) – one of the world’s most advanced armoured combat vehicles, embodying a host of advanced technologies and innovative approaches to solving some of the most intractable problems of modern warfare. Hungary is the first NATO and EU member state to have selected the Lynx for its armed forces – and it did so not only because the vehicle itself met the technical and operational requirements of the Hungarian army, but also because the Rheinmetall offer to establish a joint venture and provide the requisite knowledge and skills transfer was an extremely attractive one. As the German company has already determined in Australia and elsewhere, joint ventures, technology transfer, co-production and the enabling of optimal ‘local’ indigenous content are discriminating factors that today carry disproportionate weight in procurement decisions. MilTech staff reporting. MilTech staff reporting BONUS – Hungary’s Defence Industry Taking Flight The Rheinmetall Lynx KF41 will be manufactured in a purpose-built joint venture facility in Hungary. (Photo: Rheinmetall) Nations in Focus MT 2/2022 · 31 il t ff r rti
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