Serbia has started assembling Israeli-designed military drones at a newly opened factory, adding local production to its expanding defence cooperation with Israel. The facility is expected to employ around 100 people and manufacture advanced equipment for the Serbian Armed Forces and potentially for the armed forces of other countries. The opening of the facility and the start of drone assembly have been confirmed. Serbia has not disclosed the project’s investment value, production capacity, expected annual output or any confirmed export orders.
Elbit Systems and Yugoimport linked to project
The plant forms part of Serbia’s broader defence cooperation with Israel. Earlier reports identified Israeli defence company Elbit Systems and state-owned Yugoimport SDPR as partners in the project. Those reports said Elbit Systems holds a 51% stake, while the Serbian side owns 49%. The ownership structure was not included in the public announcement accompanying the factory opening.
Serbia and its Israeli partners also plan to establish at least three additional factories elsewhere in the country. The facilities have not yet been completed, and their locations, investment values and construction schedules have not been publicly detailed.
Domestic participation begins with drone assembly
The immediate industrial development is the local assembly of drones, while the extent of manufacturing inside Serbia remains unclear. One confirmed element of domestic participation is the production of warheads at Krušik, Serbia’s defence manufacturer. This provides a defined role for a Serbian company within the drone supply chain.
There is no detailed public breakdown of the share of airframes, electronics, communications equipment, sensors, software or other components that will be manufactured domestically. Earlier reports also indicated that engineers from Serbian aircraft manufacturer Utva, which is owned by Yugoimport SDPR, are expected to participate in the project. The full scope of their involvement has not been disclosed.
Export production remains without confirmed orders
The new facility is also intended to support equipment production for foreign armed forces, although no specific international customers or contracts have been announced. The plant is expected to supply the Serbian Armed Forces as well as the armed forces of other countries. No export volumes, delivery schedules or confirmed foreign orders have been provided.
Serbia already has a defence export industry covering ammunition, artillery systems, armoured vehicles and other military equipment. Yugoimport SDPR also provides an established channel for international defence sales. The addition of unmanned systems could expand that product portfolio if the Serbian operation secures export contracts.
Additional factories remain in planning
The proposed three additional facilities could broaden the industrial scope of the Serbian-Israeli defence partnership, but their economic scale has not yet been established. No confirmed investment values, employment figures or production programmes have been announced for the planned factories.
A broader domestic supply chain involving electronics, communications equipment, software, airframes, maintenance and weapons integration has likewise not been established publicly. The confirmed change is that Serbia now has an operating facility assembling Israeli-designed military drones, rather than relying solely on imports of completed systems. Production volumes, export contracts and the proportion of components and engineering sourced in Serbia will provide further information on the scale of domestic manufacturing as the operation develops.
