A key measure that directly contributed to the accelerated development of the defence industry was its technological revitalisation through direct investments by the Republic of Serbia in factory production facilities, as well as the development of new products by the Military Technical Institute and the factories themselves to meet the needs of the Serbian Armed Forces. These products were quickly recognised on the global market.
The number of domestically developed weapons and military equipment systems newly introduced into service over the past 13 years is three and a half times higher than in the period from 2000 to 2012.
Since 2013, investments made by the factories themselves, together with direct investments by the Republic of Serbia in key technologies, have been 12 times higher than those made between 2000 and 2012.
New production facilities for complex combat systems have commenced operations in Velika Plana. In 2017, a new factory for the production of off-road vehicles, Zastava TERVO, was also established, creating, for the first time in Serbia, the conditions necessary for the production of new and modernisation of existing land combat platforms for the Serbian Armed Forces.
The modernisation and retrofitting of existing facilities, together with the introduction of new technologies, have significantly increased the production capacity of defence industry factories. These improvements have also involved production optimisation and automation, enhanced energy efficiency, and improved occupational health and safety conditions for employees.
In certain segments, production capacity has increased several-fold: more than fourfold for rocket programmes and ammunition components, twofold for high explosives, and twofold for certain production and overhaul facilities for complex military systems, among other areas.
In addition to strengthening the defence industry through domestic investment, the procurement of the most complex combat systems from abroad has also contributed to its development through the transfer of the latest technologies, industrial cooperation, and the localisation of production of sophisticated military equipment and assemblies in Serbia.
The planned development of domestic industry has significantly enhanced its capabilities in the production of new complex land combat systems, uncrewed platforms, telecommunications, optical and optoelectronic systems, modern guided and unguided ammunition with increased range and accuracy, and new energetic materials. It has also strengthened capabilities in the development and implementation of advanced software solutions for the design, testing and production of weapons, as well as artificial intelligence algorithms and many other areas relevant to the defence system.
Today, Serbia’s defence technological and industrial base comprises more than 60 companies of various sizes and ownership structures, employing over 20,000 people and directly engaged in the production of weapons and military equipment. It also includes military technical institutions involved in the development, overhaul, modernisation and testing of weapons and military equipment, as well as numerous suppliers and subcontractors supporting the development and production process.
The core of Serbia’s defence technological and industrial base is the Serbian Defence Industry Group, which comprises 17 state-owned companies managed and supervised by the Ministry of Defence.
Over the past 13 years, the technological upgrading of domestic factories and military technical institutions, combined with favourable budgetary trends, has directly contributed to an increase in the volume of contracts for the procurement of new weapons platforms from domestic industry for the Serbian Armed Forces.
With the aim of maximising the Serbian Armed Forces’ equipment levels with modern weapons and military equipment developed and manufactured domestically, the conclusion of contracts with domestic industry for newly developed and modernised systems has intensified over the past seven years. Serial production has been successfully established following rigorous testing and verification procedures.
Between 2013 and 2026, contracts for the delivery of modern weapons and military equipment manufactured by domestic industry for the Serbian Armed Forces were concluded for a total value 20 times greater than that recorded in the period from 2000 to 2012.
Since 2020 alone, domestic industry has delivered several hundred complex combat systems to the Serbian Armed Forces, including both new and modernised systems. In terms of performance, these are equivalent or comparable to systems used by the most advanced armed forces in the world. Several hundred additional systems are currently in production, with deliveries to the Serbian Armed Forces expected by the end of this year and during the first half of next year.
During the same period, domestic manufacturers also delivered substantial quantities of next-generation small arms, modern optoelectronic surveillance and sighting equipment, various types of artillery rockets and shells with increased range and effectiveness against targets, as well as tens of thousands of sets of uniforms, footwear and personal protective equipment for military personnel.
From a strategic perspective, Serbia’s domestic defence industry plays an important role not only in the national defence system but also in the country’s international relations. Serbian products have traditionally been recognised by customers around the world for their quality and reliability, and there is considerable interest in and demand for the country’s latest products.
Since 2013, the total annual value of arms and military equipment exports has followed a sustained upward trend. Over the past two years, export value has been as much as five times higher than in 2012. Realistic estimates suggest that, over the next two years, the annual volume and value of exports of weapons manufactured in the Republic of Serbia could increase by a further 20 to 30 per cent, according to the statement.
Source: srbija.gov.rs