Croatia Signs Beretta Agreement to Build Small-Caliber Ammunition Factory

Croatia has signed a Memorandum of Understanding with Italy's Beretta Holding and Croatian investor Ivan Kapetanović to establish a small-caliber ammunition factory in Obrovac, marking a significant step in expanding the country's domestic defense-industrial capacity.

The memorandum was signed by Deputy Prime Minister and Defense Minister Ivan Anušić, Beretta Holding President and Chief Executive Officer Pietro Gussalli Beretta, and investor Ivan Kapetanović. HRT reported that Prime Minister Andrej Plenković described the agreement as the result of more than a year of negotiations and the beginning of a long-term strategic partnership with one of the world's oldest firearms manufacturers.

Obrovac to Host Croatia's First Small-Caliber Ammunition Plant

The planned facility will be located in Obrovac, in Zadar County. While officials have not yet disclosed the investment value, annual production capacity, or construction timeline, the project is expected to establish Croatia's first domestic production line for military small-caliber ammunition.

The investment would complement Croatia's existing defense manufacturing sector, particularly HS Produkt, while reducing dependence on imported ammunition for the Croatian Armed Forces and potentially supporting export markets.

Part of Europe's Expanding Ammunition Production

The Croatian initiative comes as European governments continue expanding ammunition manufacturing following increased demand generated by Russia's full-scale invasion of Ukraine and NATO efforts to replenish stockpiles.

Across Europe, governments have launched new production facilities and expanded existing plants to improve supply-chain resilience and reduce dependence on external suppliers.

For Croatia, the Beretta partnership represents another step in strengthening its national defense industry alongside ongoing modernization programs that include new armored vehicles, artillery systems, combat aircraft, and future heavy armor acquisitions.

Officials are expected to release additional details on financing, production capacity, construction schedules, and regulatory approvals as the project moves into its implementation phase.

Questions and Answers

What agreement did Croatia sign?

Croatia signed a memorandum with Beretta Holding and Croatian investor Ivan Kapetanović to develop a small-caliber ammunition factory in Obrovac.

Where will the factory be built?

The planned production facility will be located in Obrovac, in Croatia's Zadar County.

Why is the project important?

The factory would establish domestic military ammunition production, strengthen Croatia's defense industry, and contribute to Europe's expanding ammunition manufacturing capacity.