"Zastava Arms" signed new contracts for year 2010 - 15m USD from export of machine guns to Iraq

"Zastava Arms" has signed 2 billion RSD (nearly 30m USD) worth of contracts for export of military and hunting-sports arms in 2010. "Zastava" will earn half of that amount by delivering few thousand machine guns"M70" to Iraq and some other countries in the Near East and Africa. Rifles "M21", hand grenade launchers and other infantry arms will be exported by "Zastava" to Iraqi and other markets in 2010 as well.

From export of hunting-sports arms and armes for personal defense (pistols and revolvers) to European and US markets, company "Zastava Arms" expect incomes of about 150m RSD.

"Zastava's" arms factory exported over 90% of production, worth about 22m USD, in 2009, but that was enough only to provide for elementary functioning of the factory. That is why the management made the business plan prior to 2012, which, among the rest, anticipates investments, primarily in procurement of new equipment, of 12.4m EUR, growth of production and export, as well as reduction of number of employees. However, people in "Zastava" expects to get funds from the state for realization of that plan.

Since 2,600 people work in the factory now, people in the management and the trade union are of the opinion that about 1,150 surplus employees should be laid off prior to 2012. Through application of the social programme for these workers, which should be agreed with the state, it is expected that about 800 workers will leave "Zastava Arms" this and next year, while about 80 workers will be retired.

Zastava oružje a.d. Kragujevac

machine gun M70

rifle M21

grenade

arms