23.01.2011.
Interview of Minister of Defence Dragan Sutanovac "Politika"
Interview of Minister of Defence Dragan Sutanovac "Politika"
DEFENSE INDUSTRY SOARS
Is Serbia only known for tennis and the export of raspberries and weapons? Referring to statements by Defense Minister Dragan Sutanovac regarding the export of Serbian defense industry, the British "Economist" believes that this is so. But if the Serbian military industry is such an important factor in the export economy of this country, then the defense minister, in fact, is a very successful businessman. For wherever he travels, others make very successful business contracts.
Mr. Minister, it would seem that the just recently passed 2010 year was very successful for Serbian exports of arms and military equipment?
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Well, the year 2007 has made 75 million USD worth of exports in arms and military equipment while in 2008 the value of military exports was 183 million dollars, the figure was 246 million USD in 2009 and 247 million USD. So, during my term in office as defense minister the total so far in the export of arms and military equipment, was $ 750 million. What does this realization mean? Does this mean that the export figures have been charged?
- Yes, exactly.
You recently spoke about the new 400 million USD worth of defense industry exports products.
- In the process we have to export worth about $ 50 million, and we have made 400 million USD worth of exports.
Have these 400 million USD worth of contracts been signed?
-Yes, the contract is signed, it has entered into force and now only implementation needs to be started. It's only one job, that is the construction of three factories in northern Africa. Anyway, the overall worth of contracts is 1,2 billion USD, which is what I promised.
Can someone, or something, undermine the work of 400 million dollars?
- Of course it can, it all depends on various circumstances in the countries we have signed contracts with which. But we are the ones who give guarantees, they are the ones who pay.
Putting these 400 million dollar worth of contracts aside, which countries have we been most successful?
- In the first place there is Iraq, so far we have collected about $ 300 million USD in military exports, and 85 million USD from the USA, from Afghanistan 29 million USD, from Belgium we collected 23 million USD, from Italy 16 million dollars,17 million USD from Bulgaria, and from Libya 17 million USD ...
Are the Iraqis happy with the training air craft “Lasta"?
-They are really satisfied with Lasta, but it has also been praised by the American pilots who flew on it. They say that the training plane can do all stunts in the air. We also mount and equip the Iraqi Mi-17 helicopters thus turning them into fighter helicopters.
AS for the modernization of the Yugoslav-made M-84 in Kuwait, this state has 150 of these tanks in their establishments. So will we get this job or not?
- We may get the job, or not. The Kuwaitis have showed great interest, they are very satisfied with the tanks.
Yes, but we still have to deliver them at least 60 of these tanks. In 1988 and 1989 the former Yugoslavia took from Kuwait 700 million USD worth of oil which was used up, and the trade-off was to deliver tanks to them but then the breakup of Yugoslavia began however the tanks have not been delivered. In the meantime, out of 2750 Yugoslav subcontractors, only a few of them remained.
- I know, but the modernization of the M-84 for Kuwait would involve all stakeholders in the former Yugoslavia republics in accordance with economic criteria, and of course, all potential foreign collaborators. It is very important that the Kuwaitis have not modernized the tank, so we were not refugees.
Yes, but the question is whether they are still interested in the modernization of tanks?
- Yes, they are, as I was about six months ago in Kuwait and they told me that they want us to modernize tank M-84.
So what have we have we sold to the Americans. Is it ammunition?
- Yes, Serbia produces excellent hunting ammunition, and military ammunition in caliber 5.56 mm. Americans are buying also the ammunition of eastern caliber which they donate to their partners.
Is the export to Afghanistan a donation , or has it been charged? What can we export to Afghanistan? Is it ammunition?
- The exports to Afghanistan have been charged, the products being ammunition and mortars.
How many people are currently working in the defense industry in Serbia?
- Seven defense industry factories currently employ about 9,000 people, some of whom are permanently and some of them are temporarily employed. Since 2007 until today, we have hired about 3,000 new workers. During that period some 2000 employees have accepted the resettlement program or went into retirement, which made a positive change in the age structure and qualifications of employees.
The military factories have seen frequent accidents, true disasters, and the public feels that the young working force in the military industry is not necessarily a quality one. What about the accident in Cacak-based “Sloboda” factory"? Had an older and a more experienced worker started the fire he would have been able to distinguish it himself.
-That is all relative. However, it is true, that we have lost several military experts as they retired by age. Bu that was before my term in the office. Otherwise, the factory "Sloboda" in 2007 had 3 million USD worth of exports in 2007 while this figure in 2010 reached to 36 million USD. The human factor is most likely to be blamed. At the same time, none of those who criticize regularly in Serbia do not want to say that whenever the workers have no work they cut off their fingers in protest, while they tend to complain when being swamped with work.
Some say, earnings are solid, but there is much work. There is a widespread opinion that the union is the one which takes care after the workers, while in the world the situation is different, the union takes care of the factory, too.
Yes, the times of Tito and his motto "workers, the factories are yours" have long since passed. Will you as the Ministry of Defence support the defense industry factories to modernize, and help them avoid and prevent such accidents in the future?
- Of course we will. Over the past four years we have invested 29 million EUR in the factory and estimates that we need 45 million euros over the next three years to fully modernize them. For this year, the Ministry of Defence plans to invest 15 million EUR, to equip them with the most modern machinery and equipment, and in return we will get a delivery of arms and military equipment. The Ministry of Defence will also support the factory Prvi Partizan in Uzice by granting them Tresnjica location in advance to relocate some production facilities from the underground facility.
What are the salaries in the Serbian defense industry?
- They are at the average salary in Serbia.
Are you considering the possibility of privatizing the military industry?
- I think that part of the shares in the industry can be sold, thus providing them with additional funds to modernize the factory but now we are just thinking about it.
What are the major export products of the Serbian defense industry?
- Ammunition, a full range of infantry of 5.56mm ammunition to the antiaircraft artillery of various calibers and a 155 mm, then modernized howitzers of 105 mm and "Nora" by 155mm, M-92 automatic machine guns and M-84, gunpowder, rocket fuel , explosives, bulletproof vests and protective body armor, aircraft school "swallow". Program production aircraft "swallow" is a factory built "Utva". Otherwise, self-propelled howitzers "Nora B-52" is already sold in Africa and some Arab countries show great interest in that our howitzer.
What are the Arab states?
- It's still a trade secret.
What does it intend to build in Angola?
- Angola shows great interest in the military aviobaze reconstruction and the building of military hospitals and factories of arms. This may be the largest market in 2011.
Military hospital in Libya? What we supply them within this project?
- In Libya and in Angola there is interest in construction and equipment of military hospitals on the model of our MMA, which of course was the construction work, and work permanently bind those countries to our country in terms of military medicine. Practically the more than 1,000 doctors, nurses and nurses were trained by us, and many of our experts in Libya would be spent in establishing the hospital, and it is envisaged under the contract that we lead the hospital for seven years. In Serbia is coming soon and the first cadet from Libya, who will attend our Military medical university. We already have in training cadets from Montenegro and Bosnia-Herzegovina, a Libyan to be the first foreigner from Africa.
Means that the faculty MMA already well become viable?
- Yes, but we have another generation of students at the Faculty of MMA. Well, we will have for the first time officers from the faculty-physicians. MMA in the meantime we modernize and it is still a great Serbian brand.
Last year you managed to switch from Montenegro to six aircraft G-4, which is a great move, because this plane has a perspective. What about the "eagles" in Banja Luka? Which of the new weaponry and military equipment to get the army of Serbia from domestic plants, and what is foreign?
- We are interested to aircraft type "eagle" in Banja Luka, Sarajevo, well they know that nobody else in the world will not redeem it, but obviously over there, and internal issues. If we are not redeemed will be waste, or the museum. Even their minister said such a thing. As for equipment, the Army of Serbia is the local factory new trucks FAP-1118, petotonac in various versions. The first of 45 trucks to arrive at the unit in late February. We told an additional thirty trucks. Also we have bought for our military a new home M-21 rifle, about 6,000 pieces. Homemade antitank systems "bumblebee" enters into production, and military weapons, moves and test a series of domestic UAV "Sparrow", the new devices to zvukonometriju, a new sniper ammunition of 12.7 mm for a black stick. " We talked with the Brazilians and Turks around the re-production aircraft G-4 Super-Galeb, we'll see what happens. Of foreign weaponry our special 72nd Brigades are equipped with automatic rifles and machines "hekler koh" machine guns "minimi and snipers" jacket ". Of the other "news" we are working on converting military airport near Kraljevo La?evci military-civilian airport Morava. We work supermoderan new control tower at the airport, Turkey has announced a serious financial support for the project. Airport Morava will have cost-effective economic function. Otherwise, the first time in many years we give counter guarantee for advance payment of our military exports. Our company Yugoimport-SDPR "not only is the integrator of our military industry, but also a production company that has invested in projects such as aircraft," swallow ", self-propelled howitzers" Nora B-52 ", a special vehicle," Lazarus "and protective armors. The biggest jump of production in the economy of Serbia is just in the defense industry, and the British "Economist" right when he said how is it now called Serbia.
Factory Jumko "sew new combat uniforms for the army of Serbia?
- Yes, the digital pattern on the basis of satellite spatial image of our territory who has provided a spectrum of colors in our region. 8000 uniforms were purchased, the plan is to buy 10,000 uniforms every year.
Why do we officers do not go to work in uniform?
- When I came in as Minister of the Ministry of Defence none of the officers did not wear a uniform at work. I then ordered that all officers in the Ministry of Defence must wear uniforms. I also ordered that all officers from the Ministry of Defence, to the rank of Major, must spend a year in the troop for at least 30 days. To stay in constant contact with the body.
