Sutanovac stressed that this is the first time that a new production capacity has been built within the process to revive and modernise military industry, noting that the Kovacnica plant will produce 155 mm propelling charges.
He stressed that the Ministry of Defence endorsed the investment agreement between the two companies, which has resulted in 100 new jobs.
Kovacnica will not rely on Krusik alone, but will also produce for the Cacak-based Sloboda factory and for the civilian-military sector, he added.
Sutanovac underscored that the new plant operating at full capacity will produce goods worth around $10 million, thus reducing Serbia’s export by this amount and helping to decrease its foreign deficit.
The Ministry of Defence promises support for a new plant for our rocket programme, Sutanovac added, voicing his hope that this way the Serbian Army will receive quality weapons and have an opportunity to export some products as well.
The sale of Krusik’s total output in 2011 has already been agreed upon. In the previous period we re-staffed the factory and hired 800 new young workers, Sutanovac noted.
The construction of the Kovacnica plant is a result of a joint investment of around €3.2 million. Jugoimport SDPR invested €1.54 million, thus acquiring a 51% share in the company, while Krusik invested €1.48 million.
(Government of Serbia)