Thewesternbalkans
- Status of the military-industrial complex of Bosnia and Herzegovina
Bosnia and Herzegovina is not a major economic powerhouse, but it has a surprisingly thriving defense industry that is a generator for the country’s development. The foundation of its military industry was laid during the Yugoslav period, when over 50% of the arms and ammunition of the Yugoslav People’s Army were produced in Bosnia and Herzegovina. The most important and largest current enterprises in the sector were established in the period 1948-1951. According to the defense strategy of that time, the enterprises of the Yugoslav military-industrial complex were grouped in the Republic of BiH, which is centrally located in the former federation. BiH’s military industry suffered during the hostilities in the region in the 1990s, but was later rebuilt and has been developing at a rapid pace for the past ten years.
The military industry in BiH is almost entirely export-oriented, with over 80% of produced weapons and ammunition being exported to more than 40 countries. The main export markets include USA, Bulgaria, Turkey, Saudi Arabia, Egypt, Czech Republic, Slovakia, Serbia, etc. In 2023, Bosnia’s weapons and ammunition exports totaled 163 million euros, a 26 percent increase from the previous year. The main products are small-caliber ammunition, explosives and infantry weapons. As a large part of Bosnia’s arms clientele are NATO countries and Arab states, military production is oriented towards NATO standards (for example, production of 155 caliber artillery shells).
The military industry is concentrated in the Muslim-Croat federation and only a small part of the enterprises are located on the territory of the Republika Srpska. The military and defense sector is a mix of state-owned and private companies, with increasing foreign involvement. The military-industrial complex of BiH consists of a total of about 16 large, medium and small enterprises. All large companies are with prevailing state participation.
Among the leading companies in this sector are IGMAN DD Konjic, known for its expertise in production of ammunition of almost every caliber, manoeuvre ammunition and special ammunition, mainly sniper ammunition, and UNIS GINEX DD Goražde, specializing in of development in the production of initial capsules.
While IGMAN DD Konjic and PRETIS DD Vogošća produce complete shells, others such as BINAS DD Bugojno and UNIS GINEX DD Goražde produce various components for them. Other companies produce large quantities of ammunition for small arms.
BNT TMiH Novi Travnik produces recoilless infantry weapons, howitzers (including 155 mm self-propelled howitzers), mortars, rocket systems.
TRZ DD Hadžići deals with the repair and modernization of weapons and transport equipment, including military vehicles and defense equipment.
ZRAK DD Sarajevo, ZRAK Teslic and RZT Travnik – production of optical and laser equipment for military purposes.
VITEZIT DD Vitez – various types of explosives and detonators.
At ORAO, Bijeljina, aircraft engines and their components are manufactured and repaired.
FACTORY OF SPECIAL PURPOSE ENGINES, I. Sarajevo and FAST, I. Sarajevo manufacture components and engines for tanks and other heavy machinery.
The Government of the Bosnian Muslim Federation (FBiH), in a serious attempt to restart the country’s stalled arms industry, signed on 13.12.2013, a Memorandum of Understanding and strategic partnership with the U.S. company Howell Machine Inc on the production, development and trade in arms and military equipment. According to the document the FBiH Government will remain the owner, and the U.S. company will manage the 5 big state enterprises: Igman Konjic, Unis Ginex Gorazde, Binas Bugojno, Pretis Sarajevo and Zrak Sarajevo (the so-called GOKO model – Government-Owned, Contractor-Operated). The memorandum also envisages a lease agreement with Howell Machine Inc for a period of 10 years. Howell Machine Inc’s stated intention, besides profit of course, was to work with Bosnian enterprises to export output to the US and other international markets. In the market of Bosnia and Herzegovina, the company was recognized as the largest single buyer of products from the FBiH defense industry. However, in 2016 the company ran into difficulties due to poor management and lack of sales, could not pay the remaining 67 workers (out of the original 450), went bankrupt and was bought by Kash CA in 2019.
Despite the inclusion of the military industry of BiH in the supply chain of weapons for the needs of the USA, in practice the main share of military industry of BiH in the last ten years did not receive the expected support from the US.
Foto: Pexels
