Zastava Oruzje new owner of Kovacnica – Kragujevac-based company to become local military and automotive industry center

Zastava Kovacnica in bankruptcy was bought on Monday, April 24, by Zastava Oruzje at the starting price of EUR 3.43 million. Three companies previously gave up on taking part in the tender – one each from China, Italy and Serbia.

– I was prepared to offer EUR 6 million for Kovacnica – the director of Zastava Oruzje, Milojko Brzakovic, said and added that they had bought Kovacnica with their own funds.

He added that Kovacnica had always been one of Zastava Oruzje's key suppliers.

– We were aware that losing Kovacnica in any way would have fatal consequences not just for the military industry, but to the entire local metalworking complex – Brzakovic said.

He adds that the arms factory intends to turn Kovacnica into the local military and automotive industry center, as well as a center for producers of agricultural machinery, which means that forgings for Krusik Valjevo, Sloboda Cacak, Prva Petoletka Trstenik and other factories will be produced in Kragujevac.

Kovacnica, as he added, will continue delivering forgings to automotive companies in Germany, Austria, Slovenia, Hungary and Romania.

Zastava kovačnica a.d. Kragujevac

Zastava oružje a.d. Kragujevac

HK Krušik a.d. Valjevo

Sloboda a.d. Čačak

Prva Petoletka a.d. Trstenik

Zastava Kovacnica

Zastava Oruzje

Milojko Brzakovic

military industry

arms industry

automotive industry

production of agricultural machinery

forgings

forgings factory

production of forgings

Krusik Valjevo

Sloboda Cacak

Prva Petoletka Trstenik

purchase of Zastava Kovacnica