07.06.2016.

Minister of Defence in "Zastava Arms"

Defence Minister Zoran Djordjevic, Assistant Minister for Material Resources Nenad Miloradovic and Chief of the Department for Defence Technology of the Material Resources Sector, Major General Bojan Zrnic, with representatives of the SDPR company, visited the "Zastava Arms" Company in Kragujevac. They discussed with the management and trade union representatives of that important defence industry factory, the issues and the possibilities to overcome them, as well as about the improvement of the factory.

Minister Djordjevic stressed the desire of the Ministry of Defence and the Government of the Republic of Serbia is that the operation of the factory, which has so far been below its capabilities, is raised to a higher level in the forthcoming period.

- We wish that Kragujevac-based "Zastava Arms" become again a key component of the Serbian defence industry. We agreed in the forthcoming period to solve the conversion of debts, define the investment plan, especially by the end of the year, provide employment of new

workers and resolve the status of the employees who have not had pension and social insurance paid. In addition, we talked about improving safety at work, which remains one of the most important issues. We also envisaged that the Ministry of Defence and the Serbian Government assist in paying the debts that exist towards the "Zastava Arms" and thus use this money for the purpose of the development of the factory, Minister of Defence Zoran Djordjevic said after the meeting with the management of "Zastava".

Stressing that the defence minister and representatives of the Serbian Armed Forces were informed about the difficulties the factory faced in the past year and the business plan for this and the next year, Milojko Brzakovic, Managing Director of the "Zastava Arms" company, said:

- Last year we settled the loans and debts amounting to over four million, we invested 1.3 million euros in new equipment, we regularly settled and paid taxes and contributions and achieved an operating profit of RSD 293 million. At this point, value of the contracts that remain for the implementation is about USD 70 million. Bearing in mind the legacy from the previous period that burdened us, these are good results. However, to be able to compete on the world market, we need investments to increase the production, reduce production costs, and create better conditions for work and stability giving better financial effects. We planned for this year five million euro of investments, of which we have already invested nearly three million; for further investments we expect assistance from the state and the government, Milojko Brzakovic, General Director of "Zastava Arms", said.