Celje - Slovenian maker of ultralight aircraft Pipistrel has signed an aircraft manufacturing agreement with Hungary's Genevation Aircraft on the manufacture, marketing and provision of after-sales support for select markets, a deal the company says is worth in excess of EUR 100 million over ten years.

The agreement on the final assembly of Pipistrel SW 121 family aircraft for select domestic and international markets, and cooperation in the development of opportunities and production of advanced composite structures, aircraft components, special mission programs and zero emission aircraft was signed on Wednesday at the Celje Trade Fair, where the Hungarian and Slovenian governments held a joint session.

Pipistrel director Ivo Boscarol said the initiative came from Hungary two years ago. The country is technologically highly advanced but it does not have own aircraft design and production capacities.

Several months ago the Hungarian and Slovenian governments signed a memorandum of understanding in which they stated that Hungary is willing to promote and strengthen the growth of its defence industry, while Slovenia supports bilateral and regional industrial cooperation in select industries.

The aircraft which will be produced in Hungary will be sold in markets of the former Soviet Union, Africa and select other countries. Cooperation in research is also planned, according to Boscarol.