32 · MT 2/2022 Nations in Focus lead in the enterprise, with the production facility to be newly constructed and funded by local enterprise. The resulting centre of excellence for the development, production and maintenance of armoured vehicles will create an important nucleus for the Hungarian defence industry. This constellation, which involves a local production partner in Hungary, will ensure that a substantial share of the added value deriving from the procurement project takes place in the customer country. For Hungary, this procurement order represents an enormous step in its efforts to introduce a new generation of military equipment, with key systems that meet the latest NATO standards. The Lynx concept embraces a complete vehicle family, consisting of a chassis module and flexible mission kits in numerous variants. This means that the basic vehicle can be configured as an IFV, an APC, a command vehicle or a field ambulance. Moreover, switching from one configuration to another can be accomplished in a matter of hours. Thanks to the uniformity of the basic vehicle, the system will result in substantially lower lifecycle costs, while simultaneously letting military users adapt to changing tactical requirements and/or leverage new capabilities. Outstanding survivability, mobility and lethality characterize the Lynx, as do excellent growth potential, including in terms of its total weight. Learning the how – and the why – behind all these capabilities, and learning how to fabricate, manufacture, integrate, test and commission all the various systems that go to make up the weapon system will provide enormous and exploitable benefit to the indigenous industry. Integrating the StrikeShield active protection system (APS) – the subject of a separate €140 million contract with Rheinmetall last year – will also bring levels of exploitable knowledge for Hungarian manufacturers, though the exact parameters of the level of technology transfer (if any) remain unclear currently. Above and Behind the Battlefield In the air domain there is also a single large programme that dominates the potential involvement of the Hungarian defence industry. Budapest has ordered two KC-390 Millennium tanker/transport aircraft which has resulted in a number of initiatives, not the least important of which is Embraer’s decision to open an office in Budapest, targeting Central and Eastern Europe. The initiative is not just about using Budapest as a springboard, as Jackson Schneider, President & CEO of Embraer Defense & Security made clear. “Embraer is keen to increase its presence Under the €2 billion contract, Hungary is to procure 218 Lynx KF41 IFVs and nine Buffalo armoured recovery vehicles, along with associated products and services such as training and instruction, an initial supply of spare parts and maintenance support. The IFVs are to feature the Lance turret, also developed by Rheinmetall. The most important element of the Hungarian order and the co- production agreement is that Rheinmetall is quite confident in predicting future volume orders for the vehicle – it is competing for major potential contracts in Australia and the United States, for example. Hungarian manufacturing capabilities – and the indigenous supply chain – will both benefit from success in this regard – another reason the Rheinmetall offer was the most attractive to the Budapest authorities. This has already happened in earlier contracts: for example, it is anticipated that the majority of Lance turrets for the first phase will be supplied by the Rheinmetall Military Vehicle Centre of Excellence in Brisbane, Australia. Furthermore, given the expected service life of the Lynx is measured in decades, there is an assured spare and replacement parts market that will also benefit the Hungarian partners. The first phase of the procurement contract covers 46 Lynx IFVs and all nine Buffalos, built in Germany and delivered by the beginning of 2023. The second phase covers the balance of 172 Lynx, to be built in Hungary. Rheinmetall has taken a majority stake in the joint venture and will take the Selected Hungarian defence industry companies currently members of the Defence Industry Association of Hungary. For further information, see www.vedelmiipar.hu Company URL City AQ Anton Kft- Jet engine and missile components and engineering www.anton.hu Zalaegerszeg Artifex Simulation Systems - Simulators for military, homeland security and humanitarian assistance/disaster relief missions www.artifex.hu Budapest BHE Bonn Hungary Ltd - RF and microwave electronic components www.bhe-mw.eu Budapest Carinex Ltd - Communications monitoring/surveillance and direction finding systems; counter-UAS systems www.carinex.hu Budapest Detektor Plussz 11 Ltd - Explosive ordnance disposal and mitigation www.bombavadasz.hu Mezökövesd Gamma Technical Corporation - CBRN reconnaissance and decontamination, personal protection equipment www.gammatech.hu Budapest Horányi Hajógyár Ltd - Boats, patrol vessels, pontoons www.wiking.hu Szigetmonostor HM Armcom Communication-Tech Co Ltd - Communications and network equipment www.armcom.hu Gödollö HM Currus Combat Vehicle Technique Co Ltd - Equipment and systems maintenance, engineering and training www.currus.hu Gödollö Magnus Aircraft Zrt - Light aircraft www.magnus-aircraft.com Pogány Pro Patria Electronics Ltd - Microwave and electro-optical sensors, systems and integration www.propatria-inc.com Budapest Rába Vehicle Manufacturing and Trading Ltd - Logistics vehicles www.raba.hu/vehicle Györ Sero International Ltd - Small arms, sniper rifles www.sero.hu Veresegyház Ventus-Tech Kft - Unmanned aerial vehicles www.ventustech.hu Budaörs Officials autograph components going into Hungary’s first KC-390 during a ceremony held in Brazil in November 2021. (Photo: Embraer/Claudio Capucho)
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