Zastava Oruzje to become the backbone of the defense industry – Investments worth EUR 5 mil in 2016

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- We wish for Kragujevac's Zastava Oruzje to become again one of the bases of the defense industry of Serbia – said Djordjevic and stated that the agreement had been made with the factory's management to convert the debts, define the investment plan, secure new employments and solve the statuses of employees which hadn't been receiving retirement and social insurance in the next period.

Djordjevic said that the Ministry of Defense and the Government of Serbia were to help pay the debts owed to Zastava Oruzje and to put the money into the development of the factory.

General Manager of Zastava Oruzje Milojko Brzakovic said that the factory had returned its loans and debts of over four million euros and invested EUR 1.3 mil in new equipment, paid its taxes and obligations regularly and made RSD 293 mil of income in the previous year.

- At this point, the value of the remaining contracts for the realization is around USD 70 mil. Considering the inheritance which burdened us in the previous period, these are good results – said Brzakovic.

The manager added that, in order to be competitive in the market, the factory needed investments which would help it increase the production, reduce production costs, create better work conditions and stability which produces better financial effects.

- We are planning EUR 5 mil of investments in this year, of which we have already invested nearly EUR 3 mil, whereas we expect the state and the Government to help us with the rest – said General Manager of Zastava Oruzje.