Croatia's Defence Minister, Mario Banozic, awarded on Tuesday contracts worth 284 million kuna (€37.5 million) from the country's military procurement plan for 2021 in a meeting with CEOs of the local defence industry.

“By using products of the Croatian defence industry, the Croatian Army provides our industry with excellent references which helps it compete in tenders in other countries. The Defence Ministry and the Croatian Army are therefore not just users of locally made products – they are also contributing to the growth of Croatian companies, and the positioning of Croatian defence industry products on global markets,” Banozic said.

He said that defense funds from the new EU budget would be made available through the European Defence Fund as of April.

“In cooperation with the Defence Ministry, the Croatian Army, science institutions, universities, as well as other (government) departments, we will be working on developing Croatian defence products and drawing EU funds that will be used for their manufacturing and marketing,” Banozic told company executives in a meeting where they were formally awarded supply contracts.

Banozic said that this year’s government budget includes 4.8 billion kuna (€634 million) for defence spending, and added that some large projects had been postponed because of the coronavirus pandemic.

“Many see investing in the Croatian Army as just another expense, but I disagree. It is an investment in the security and future of our citizens. In addition, we take part in peace missions around the world and also we support civilian institutions,” Banozic said.

Among major procurement contracts awarded on Tuesday, Banozic cited the purchase of new machine guns, simulators for the Finnish-made Patria armored personnel carriers, and Czech-made Zlin aircraft.

“The money invested in the purchase of Croatian products will ensure that the Croatian Army is equipped with high-quality products and that it keeps up with the best armies in the world. On the other hand, the Croatian defence industry will use it to pay salaries and to develop new products and projects that will help us stay competitive on the global market,” CEO of Karlovac-based handgun maker HS Produkt, Zeljko Pavlin, said.

HS Produkt successfully exports its handguns to the US market and is one of the best performing defence industry businesses in the country. Another local success story is Sestan-Busch, a company based in the town of Prelog which went from a small family-owned business to a major maker and exporter of helmets and other protective gear used by military and police forces around the world.

“Thanks to the 25 years of collaboration with the Croatian Army, Sestan-Busch has become a respectable exporter of Croatian defence products and one of the best military equipment manufacturers in the world,”  CEO of Sestan-Busch, Alojz Sestan, said.

(€1 = 7.57 kuna)