Croatian Defense Industry as an Export Brand

The Croatian defense industry is recording a 20 percent annual growth and has significant potential for further growth, it was emphasized at the conference ‘Croatian Defense Industry as an Export Brand’ held on Tuesday in Zagreb, which gathered representatives of the state leadership as well as numerous domestic and foreign entrepreneurs, defense experts, and other interested parties.

The event was organized by Jutarnji list, with the support of the Ministry of Defense of the Republic of Croatia (MORH) and under the patronage of the President of the Republic of Croatia, Kolinda Grabar-Kitarović.

>>>Plenković on the ‘deceptive drop in employment’: The fact is that the labor market situation is improving

At the panels during the conference, representatives from NATO, the EU, Israel, and domestic agencies and companies shared their experiences, while welcoming speeches were delivered by the President of the Republic and Commander-in-Chief of the Armed Forces Kolinda Grabar-Kitarović (via video message), Prime Minister Andrej Plenković, Deputy Prime Minister and Minister of Defense Damir Krstičević, Minister of the Interior Davor Božinović, President of the Croatian Chamber of Economy (HGK) Luka Burilović, and Editor-in-Chief of Jutarnji list Goran Ogurlić.

Last year, Croatia exported military weapons and equipment worth approximately 200 million euros, and exports are continuously growing, with a remarkable increase of 36.8 percent in 2015 compared to the previous year.

All conference participants emphasized the importance of the Croatian defense industry, both for the Croatian economy, especially exports, and for contributing to national security through cooperation with MORH and the Ministry of the Interior, as well as global stability and security through contributions to numerous operations and missions worldwide.

Grabar-Kitarović: The Croatian military industry deserves special care from the state

The President of the Republic stated in a video message that the goal of the conference is to raise public awareness of the significance of the Croatian military industry, which employs thousands of people and records high export growth rates, while also providing a certain level of security for our citizens and the security-defense system as a whole.

– An economic sector that achieved a growth of approximately 120 percent in 2016 compared to the previous year, and is also a guarantor of the long-term maintenance, development, and enhancement of our defense capabilities, undoubtedly deserves special care from the state and a partnership relationship with state bodies, she stated.

>>>The President commented on the ‘deceptive drop in unemployment’ and educational reform

With the quality of their products, Croatian manufacturers in the defense industry are competing equally in the demanding global market, the President noted. She believes that this will continue the positive trend of increasing reliance of the Croatian Armed Forces on domestic production.

As the Commander-in-Chief of the Croatian Armed Forces, Grabar Kitarović stated that she will continue to support an even stronger engagement of state bodies in finding common projects and interests with the domestic defense industry, which will produce positive effects for the business results of our manufacturers and the economy as a whole, while simultaneously enabling further strengthening of our defense industry as a pillar of the security of the Republic of Croatia.

Plenković: The government will take measures for the benefit of the Croatian defense industry

Prime Minister Plenković emphasized that the importance of the defense industry also lies in its added value, which extends into various segments of society and is inseparably linked to the development of Croatian science, technology, and innovation.

In this context, he said, the Croatian defense industry has the potential to become one of the drivers of even stronger economic and technological development in Croatia. The more we can produce for our Armed Forces, the less dependent we are on the turbulent movements of global politics, the Prime Minister emphasized.

>>>Vučić: We meet ‘by the horse’, while Zagreb residents meet ‘by the ban’

He also pointed out that the EU anticipates a significant strengthening of its defense capabilities, with a budget of 500 million euros allocated through the European Defense Industrial Development Program. Therefore, he called on the Croatian defense industry to follow projects, establish cooperation with the defense industries of other EU member states, and compete in the common European market.

– The Croatian government will ensure that the Croatian defense industry and its small and medium-sized enterprises are not at a disadvantage in the context of implementing European projects. We want to hear your voice at gatherings like this regarding cooperation with the EU and NATO and take measures that will benefit the Croatian defense industry, the Prime Minister stated.

The fact that we are present in a number of missions indicates that Croatia, after being a recipient of security for many years, is now a strong contributor to global peace and security. “And in this process, the Croatian defense industry has the potential to contribute even more than it has so far,” concluded Plenković.

Contracts of MORH with domestic companies this year worth 230 million kuna

Deputy Prime Minister and Minister of Defense Damir Krstičević emphasized that the Croatian defense industry, which emerged during the Homeland War, today represents one of the significant factors of overall economic development.

– We can proudly state that the Croatian soldier is fully equipped with Croatian weapons and equipment, and we highlight this with pride everywhere, he said.

The most visible aspect of investment in the Croatian Armed Forces in the upcoming period will be the procurement of multi-role combat aircraft, which, according to Minister Krstičević, represents a great opportunity for the Croatian defense industry. Because one of the key parameters for selecting a combat aircraft, besides strategic partnership and price, will be the possibility of business cooperation, he added.

Minister Krstičević announced that Croatia is also set to replace existing helicopter platforms, develop unmanned aerial systems, and others. All of this represents an opportunity for the domestic industry, concluded Krstičević.

This year, MORH signed contracts with domestic companies for the procurement of defense equipment worth around 230 million kuna, which relates to the procurement of footwear, clothing, equipment, services, and works, and the Croatian contingent that left for a mission in Afghanistan yesterday was fully equipped and armed with Croatian military weapons for the first time, including a rifle of Croatian production.

>>>AfD accused Lidl of ‘anti-Christianity, capitulation to Islamism’

Minister of the Interior Davor Božinović stated that the Ministry of the Interior, as a system with 26,000 people, is the largest user of domestically produced weapons.

Currently, more than 9,000 police officers in the Ministry of the Interior use pistols from Croatian companies, and a thousand rifles of Croatian production are being introduced into use, the minister said, adding that in the past seven years, 296 million kuna has been spent from the state budget for police uniforms.

– I would like to thank numerous Croatian partner companies for their dedicated work and for equipping our police officers from head to toe with quality products, said Božinović.

President of HGK Burilović assessed that the Croatian military industry is a global brand. He expressed confidence that in the future, along with its role in the defense system, it will be one of the significant drivers of economic development in the Republic of Croatia.