Beretta to produce ammunition in Croatia: 'Such a factory is necessary, we didn't have it in Yugoslavia'

Italy’s Beretta Holding has signed a memorandum of understanding with the Government of Croatia and investor Ivan Kapetanović to establish a small-calibre ammunition manufacturing plant in Obrovac, marking a major step in Croatia's efforts to bolster its domestic defense industry. The agreement, which involves a total investment of €125 million, will see Beretta hold a 50 percent plus one share stake in the venture, while the remaining shares will be divided between the Croatian government and Kapetanović. According to plans, the factory is expected to begin operations in 2029. The memorandum was signed by Defense Minister Ivan Anušić, Beretta Holding CEO Pietro Gussalli Beretta, and investor Ivan Kapetanović. Prime Minister Andrej Plenković emphasized during the signing ceremony that the partnership would contribute to long-term investments in Croatia’s economy, export growth, and defense sector. He described the collaboration as evidence of a structured approach aligned with the new philosophy of European defense industry cooperation, where multiple partners work together to strengthen European defense capabilities. This marks the second strategic partnership for Croatia’s defense industry following the agreement between DOK-ING and German company Rheinmetall regarding the development of autonomous combat systems and drones. Military analyst Marinko Ogorec stressed the importance of such agreements, stating that Croatia urgently needs an ammunition production facility. “It is necessary for every sovereign country with its own armed forces to have its own production of basic ammunition,” he said. He added that this kind of infrastructure should have been part of Croatia’s military production system much earlier. Plenković highlighted that Beretta’s presence in Croatia demonstrates a shift in European defense strategy, emphasizing collaboration among multiple companies to enhance regional defense capacities. He noted that the project would not only benefit Obrovac but also contribute to economic development and exports. However, questions remain about how Croatia will utilize its resources beyond this initiative. Modern technology allows for rapid mass production of large quantities of ammunition. Analysts pointed out that smaller armed forces, like Croatia’s, cannot consume all the output, so these industries typically aim to sell surplus equipment on international markets. This is not a new phenomenon, Croatia currently serves as a minor customer for weapons produced by HS Produkt in Karlovac, with excess arms exported to the United States. A similar situation exists with helmets manufactured by Šestan Busch. The acceleration of European defense development appears to have gained momentum after the presentation last year of the EU’s White Paper “Readiness 2030,” which forecasts an investment of €800 billion into defense capabilities and military industry up to 2030. In May, Croatia signed a €1.7 billion loan with the EU under the Security Measures for Europe (SAFE) instrument, intended for purchasing weapons. Additionally, NATO insists that all member states allocate at least five percent of their GDP to defense by 2032. European defense industry had previously been secondary or even tertiary in priority compared to defense needs due to the belief that such capacity would not be required. However, recent geopolitical developments have shifted this perspective. Croatia, particularly since 2000, has increasingly focused on strengthening its defense infrastructure, aligning itself more closely with European and NATO initiatives. The establishment of the Beretta ammunition plant represents a tangible step toward achieving greater self-sufficiency in defense production and reducing reliance on external suppliers. The project is expected to create jobs and stimulate local economic activity in Obrovac, while also contributing to broader national security goals. As the plant nears completion, further details about its operational structure, workforce requirements, and potential partnerships are anticipated. The success of this initiative could serve as a model for future collaborations aimed at enhancing Croatia’s strategic autonomy in defense matters.