Source: eKapija | Friday, 22.06.2018.| 12:04
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Zastava Oruzje plans construction of new facility – Tender opened, investment worth around EUR 2 million

Illustration (Photo: Stoyan Yotov/shutterstock.com)
Zastava Oruzje is planning the construction of a new 4,000-m2 facility, as confirmed by the Kragujevac plant for our portal.

As the company`s director, Milojko Brzakovic, told eKapija, they expect the facility to start operating in early 2019.

– The tender for the preparation of the main project for the construction of the hall and the works is in progress. We expect to pick the contractors in July and for the construction to start this autumn – Brzakovic says.

The new facility is part of the investments realized with the help of the Government of Serbia, which has set aside EUR 9.7 million for the modernization of the production and the resolving of infrastructural issues at the company. The new hall, Brzakovic says, will be financed partly from their own funds and partly from the said government funds, and the total investment will amount to around EUR 2 million.

The facility will be built in place of the hall demolished during the NATO bombing, and Zastava Oruzje expects the production capacities to increase by around 20% after the construction.

According to Brzakovic, Zastava Oruzje has contracted production until mid-2019, and they are also contracting jobs for the third quarter. Our interviewee adds that the products from the Kragujevac factory are exported worldwide, to the Middle East, Asia, Africa, USA...

– In addition to the production, we pay special attention to investments in the workforce and we expect to employ around 150 to 200 new workers by next year, mostly in the production sector, as well as engineers.

Brzakovic also says that nearly all the money received from the government in the past period has been spent, primarily for the contracted procurement of modern equipment. Furthermore, he announces, the Kragujevac company will continue investing in enhancing the production from its own funds in the upcoming period.

Privatization

The workers of Zastava Oruzje, let us remind, recently launched a general strike requiring the Kragujevac plant to be exempt from the privatization process, which is envisaged by the new Law on Arms and Military Equipment.

Brzakovic says for our portal that this is in fact a capital increase and not a classic privatization and that the further process will depend primarily on the interest in the Kragujevac plant.

So far, he says, neither local nor foreign companies have expressed any concrete interest in it.
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