Serbia Opens Israeli Drone Assembly Plant, Plans Three More Factories

Serbia has opened a new facility for the assembly of Israeli-made drones as Belgrade accelerates investment in unmanned systems and expands its domestic defense manufacturing base.

President Aleksandar Vučić announced the opening on Thursday, saying the factory would employ around 100 people and manufacture advanced equipment for the Serbian Armed Forces as well as the militaries of other countries.

The facility was not opened to journalists because of what Vučić described as the confidential nature of the production process. Video released by the president showed some of the unmanned systems being assembled at the site.

“We have enormous plans,” Vučić said, adding that he expects at least three additional factories to be established in Serbia together with Israeli partners.

Elbit Systems previously linked to project

Serbian officials have not publicly identified the Israeli industrial partner in Thursday’s announcement.

However, an investigation published earlier this year by BIRN and Israeli newspaper Haaretz identified Israeli defense company Elbit Systems and Serbia’s state-owned defense group Yugoimport SDPR as the partners behind the drone production project.

The investigation reported that the planned facility would be jointly owned by Elbit and Yugoimport SDPR.

Elbit Systems is one of Israel’s largest defense companies and has an extensive portfolio of unmanned aerial systems, including tactical and long-endurance platforms.

Vučić had confirmed in August that Serbia was preparing to open a drone factory in cooperation with Israel, saying at the time that production was expected to begin in September.

Serbia expands domestic drone production

The new facility comes as Serbia increasingly places unmanned systems at the center of its military modernization and defense industrial strategy.

In July, Serbia demonstrated several domestically developed unmanned systems, including the Vihor interceptor drone and Gavran UAV. Serbian officials said both systems were expected to enter serial production. The Serbian Armed Forces are also preparing dedicated units for operating drones and unmanned ground vehicles.

The government is simultaneously seeking to build out the industrial supply chain around unmanned systems.

At the end of August, Serbia signed a framework agreement with Chinese battery manufacturer Jiangsu Reliance Energy Tech for a planned factory in Inđija producing batteries for drones, unmanned vehicles, robots and other high-tech applications. The planned investment is valued at more than €100 million, according to Serbian officials.

The opening of the Israeli-linked drone facility marks another step in Serbia’s effort to combine foreign technology partnerships with domestic production, while positioning its defense industry to supply both its own armed forces and export markets.