Bosnian company Vitezit, which specialises in making explosives, was sold on Monday to the Winsley Defence Group which is owned by a Bosnian Croat arms trader, Zvonko Zubak, Bosnian media reported.

The Municipal Court in Travnik today held a public auction for the sale of bankrupt Vitezit’s core business and Zubak took over that factory, based in the town of Vitez, for the sale price of €5.5 million.

Local media reported that the Winsley Defence Group, headquartered in the Bosnian town of Odzak has now become the owner of parts of the company that produces nitroglycerin, plastic explosives along with testing ranges, machines, plants and warehouses as well as the company’s other facilities.

Zubak’s company acquired Vitezit after three previous auctions had failed.

According to local media the new owner announced the relaunching of production within 18 months and that he would employ 500 workers and invest €65 million into the company that should be capable of producing 4,000 tonnes of gunpowder a year.