26.04.2016.

The foundation stone for small arms ammunition factory laid

Serbian Prime Minister Aleksandar Vucic has laid today the foundation stone for the factory of small arms ammunition of the investor "Yugoimport SDPR", in Uzici near Pozega, whose value is estimated at EUR 89.5 million. The event was attended by State Secretary at the Ministry of Defence Nenad Neric, Assistant Minister for Material Resources Nenad Miloradovic, Head of the Defence Technology Department Major General Bojan Zrnic, representatives of the Ministry of Defence and the Serbian Armed Forces.

Vucic pointed out that this is an important day for Serbia and Pozega region, because it is after a long time that a new factory opens to employ 450 people.

- In the first phase already, the production of 7.62 and 9 mm ammunition will engage 300 to 350 workers, and when the production of 12.7 mm ammunition starts, it will employ another 100 to 150 people, the Prime Minister said.

Apart from exports, the new ammunition will be used to improve the combat readiness of our army, and the funds dedicated to innovations and new factories, which now amount to USD 2 million, will be increased by six times, Vucic said.

- I believe that in the next four years, we will improve the capabilities of the Serbian Armed Forces by 50 to 60 percent, which will be much stronger than it is today, because we will invest much more money, but not to attack anyone, because we wish peace, but in order to be able at any time to save our country, the Serbian Prime Minister said and added that the country primarily wishes to develop its economy and industry, which requires stability.

Vucic pointed out that the agreements were signed for the implementation of eight projects of the defence industry worth 530 million dollars.

- Our defence industry is a huge potential for Serbia and that is where we are going to invest more, because by that we develop our economy sending a message at the same time that Serbia is sufficiently tough nut to dissuade anyone from possible attempts of aggression, he said, and confirmed that Russian helicopters are coming in a month, that the takeover phase is underway, after which other aircraft will be acquired as well.

General Director of "Yugoimport SDPR" Jugoslav Petkovic expressed satisfaction that it is after 50 years that Serbia is building the ammunition factory again.

- This is one of the largest investments in the country, worth 90 million euros, and it is particularly important that we finance it from our own funds, without credits – Petkovic said and added that this company, in the lasts three and a half years, invested more than 46 million euros of their money, hired 322 people, and that the profits which are paid to the state were at a level of five and a half billion dinars.

He confirmed that "Yugoimport SDPR" in the first three months of this year exported goods worth 128 million dollars, with a profit of two billion dinars, as it has been planned for the entire year.

- We will ask the Serbian government through re-balance to double our results and achieve 4 billion profit, which would be the best result in company history, Petkovic said.

The factory of small arms ammunition, in the first and second phase, which are to be completed by July 2017, will have 19 buildings with a total gross area of 9 thousand square meters, with annual production of 140 million pieces of 5.56, 7.62 and 9 millimetres ammunition. In the third phase, which should be completed by 2020, another two buildings with surface area of 2300 square meters will be added, to produce 5 million pieces of large-calibre bullets - 12.7 mm, and in 2019, a year later, twice as many of these.

The factory of small arms ammunition in Uzici is part of the project of development of the Defence Industry, under the working title – Serbian Defence Technological and Industrial Base (SDTIB) - "Vision 2020".