Bosnian PM Niksic: Federation to Build Propellant Plant near Tuzla and New Defense Factory in Cazin
Bosnian PM Nermin Nikšić revealed plans to build a domestic propellant plant near Tuzla and a new defense factory in Cazin, signaling a new era of industrial growth.
Bosnian Prime Minister Nermin Niksic has announced a new wave of strategic investments to strengthen the country’s defense industry — including the construction of a propellant production plant near Tuzla and a new manufacturing facility in Cazin.
In an exclusive interview with Euronews BiH, Nikšić emphasized that the defense industry, once a key driver of Bosnia and Herzegovina’s economy, is entering a new phase of revitalization and expansion.
“Before the war, the defense industry was one of Bosnia and Herzegovina’s main engines of development. I’m confident we are now entering a new period of growth, which — with strong government support — will restore this sector to its strategic importance,” said Niksic.
He noted that during his earlier term, companies such as Unis GINEX, and Igman were successfully revitalized, while in recent years BNT and Binas have made notable progress.
Nikšić also highlighted Pretis as one of the most promising companies due to high global demand for its products, despite current operational challenges.
Strategic Focus: Domestic Propellant Production
To strengthen self-sufficiency and ensure full control over key components in ammunition manufacturing, the Federation Government has purchased land near Tuzla for the construction of a state-backed propellant plant.
“The Tuzla location is ideal — isolated, safe, and compliant with all international safety standards. We’ve already completed part of the documentation process, and the next step is to finalize the investment and secure the necessary funds,” Niksic explained.
The new facility will enable Bosnia and Herzegovina to produce its own propellants — a critical element in ammunition production — and significantly reduce reliance on foreign suppliers.
Regional Expansion: Cazin and Herzegovina Next
As part of a broader industrial diversification strategy, the government plans to establish a new defense production facility in Cazin, with additional expansion planned in Herzegovina.
“We’re still evaluating several options for the Herzegovina site, but our goal is to complete the production chain and ensure balanced industrial growth across the Federation,” Niksic stated.
Partnerships and Investment Support
Nikšić confirmed that several serious investment partners have already expressed interest in joining the projects.
He underlined that financing should not be a major obstacle, as the sector’s strong financial performance provides a solid foundation for new capital investments.
“The defense industry will remain a powerful engine of economic growth and technological innovation in the Federation of Bosnia and Herzegovina,” Niksic concluded.
