Serbian technology company Mercury.AI plans to start manufacturing security cameras at a new facility in Jagodina in the first half of 2027, bringing together artificial-intelligence software developed in Serbia with domestic electronics production.
The planned factory covers 22,000 square metres and is expected to create more than 700 jobs. The production schedule was confirmed, Mercury.AI’s business development manager, during an interview at the Security Essen exhibition in Germany. Mercury.AI develops video-surveillance equipment, video-management systems and AI-based analytics, while its research and development operations are based in Belgrade. The company intends to integrate software engineering, hardware development and manufacturing, giving it greater control over product design, quality and commercial deployment.
Mercury.AI expands from software into hardware
Mercury.AI started as a software developer before moving into video-management platforms and proprietary camera products. The Jagodina investment is intended to support the company’s expansion into integrated technology production. Its Belgrade R&D team develops analytics for the company’s video-management and network video-recording systems. The applications include fire and smoke detection, vehicle and pedestrian identification, perimeter monitoring, licence-plate recognition and industrial safety monitoring.
The company’s software can also operate with cameras produced by other manufacturers. This allows customers to add AI capabilities to existing surveillance networks without replacing their installed equipment. That approach combines hardware sales with software that can be deployed across existing camera infrastructure.
Manufacturing strategy targets higher domestic value added
The project represents a different model from contract manufacturing, which has accounted for a significant part of Serbia’s foreign-investment-driven electronics industry. By controlling software, product design, intellectual property and manufacturing, technology companies can retain more value within the domestic economy while developing their own export products.
Mercury.AI’s planned workforce of more than 700 employees would represent a significant addition to employment in Jagodina. The eventual economic contribution will depend on the structure of the workforce, including engineering, manufacturing and quality-control positions. Domestic value added will also depend on the sourcing of components. Mercury.AI plans to continue obtaining key components through a supplier network, so the size of the facility and employment target alone do not establish the proportion of production value generated in Serbia. The company has not disclosed a confirmed investment value or planned annual production capacity in its latest announcement.
US expansion accompanies technology manufacturing plans
Mercury.AI is preparing to establish a presence in the United States, which the company identifies as an important market for its international expansion. Its products can be used in commercial surveillance, industrial monitoring, logistics and public infrastructure. International sales, however, require compliance with cybersecurity, product certification, data-protection and procurement requirements.
Customers increasingly assess hardware-component origins, software security, data handling and long-term technical support when selecting security technology suppliers. Mercury.AI has also indicated involvement in a smart-city project in Belgrade, providing an example of potential demand for integrated surveillance and analytics systems. Applications involving facial recognition and public-space monitoring are subject to legal safeguards, oversight and applicable privacy requirements.
Jagodina facility targets first production in 2027
The planned production start in the first half of 2027 will be the next major milestone for the project. Construction, equipment installation, certification, customer contracts and export orders will determine the scale of the factory’s operations once production begins. The investment combines Serbian-developed AI software with domestic hardware manufacturing and forms part of Mercury.AI’s strategy to expand beyond software development and into proprietary technology products and international markets.
