Budapest Transport Centre (BKK) placed an initial €90m order for 37 CAF Urbos LRVs earlier this year and recently exercised an option for an additional 10 units.
In order to provide sufficient production capacity to meet BKK's delivery schedule, CAF will transfer final assembly of some of the vehicles to the Bombardier MÁV plant in Dunakeszi, and it is hoped the facility will eventually be able to carry out full assembly of LRVs.
Previously the plant has been used by Bombardier to build and overhaul coaches, and the facility has also fabricated bodyshells for DMUs. However the company struggled to secure orders for the plant in recent years and it is hoped the agreement with CAF will safeguard 400 jobs.
It has also been suggested that the Hungarian government may decide to acquire Bombardier MÁV, effectively meaning the trams would be assembled by the Hungarian state. According to Bombardier MÁV and government officials, the company would then seek to produce trams not only for Budapest but also for other European operators.
As part of the project tracks in the Dunakeszi plant and the rail connection to the main line network will be electrified with a system that could be used both by main line railway vehicles at 25kV ac 50Hz or the trams being built at 600V dc, effectively creating a 2km test track.