“Zastava weapons” made 23 million USD profit

Kragujevac based factory “Zastava weapons” made a profit of 23 million USD in 2008, and it expects an increase of at least 7 million USD in 2009, as it was stated today (December, 25, 2008) by the factory’s C.E.O., Rade Gromovic.

At the press conference, Gromovic said that this was the biggest profit of “Zastava weapons” in the last 17 years, and products’ placings were bigger by 80% in relation to the previos year. He also mentioned that achieved results would be even better if the contract with the American factory “Remington” was not on the “stand-by”.

Speaking about neext year plans, Gromovic saidt that half of the planned profit of 30 million USD had already been covered by contracts. The factory has repromaterial for production for the next 5 years. And 80% of the planned profit was made from export.

Gromovic said that the best export was done with products of the military program, with assistance of United nations, as well as hunting and sports weapons.

Gromovic is not expecting privatization of the factory, and regarding the question of the tender for supplying international powers by the contract with UN, he believes it will be finalized by the end of the year.

At this moment, Gromovic doesn’t have information about M21 rifles, and weather the state will be buying them in the coming period for the needs of the Serbian army.

He admits that present results would not be possible without the state’s help and he applause to the Government’s decision to grant loans to big commercial exports, because through that kind of financing, the factory could have an increase of export by 10% than in this year.

There are 2.593 workers in “Zastava weapons”, 48 years on average. Gromovic is expecting that the state will take care of the working invalids which make around 10% of entire number of employees.

According to Gromovic, the factory invested 1,8 million euros in this year, for the purchase of new numerical machines, which helped the made results. In the next year, it is planned to give 2 million euros on investments.