Serbian Defense-Linked Factory Faces Power Cut, Union Says 220 Workers Sent Home
A Serbian union says power was cut to Zastava Kovačnica in Kragujevac, sending 220 workers on temporary leave amid unpaid electricity bills.
Electricity supplies to Serbia's Zastava Kovačnica industrial plant in Kragujevac were disconnected on November 2, with 220 employees reportedly placed on temporary leave, according to the Association of Free and Independent Trade Unions (ASNS).
The union said the state electricity company, Elektroprivreda Srbije (EPS), disconnected the facility over unpaid electricity bills. Employees were sent home on compensation equivalent to 60% of their regular wages, according to the association.
Zastava Kovačnica is a metal-forging manufacturer connected to Serbia's defense industrial sector. It is a separate legal entity from Zastava Arms, the better-known Kragujevac weapons manufacturer.
The reported interruption raises concerns about the financial and operational position of industrial manufacturers that depend on continuous electricity supplies for production.
Union Warns Other Defense Factories Could Face Similar Disruptions
ASNS said unpaid electricity obligations have accumulated over several years at companies operating within Serbia's defense industrial sector.
The association warned that electricity disconnections could prevent affected manufacturers from generating the revenue necessary to repay outstanding obligations.
According to local Kragujevac reporting, the union had already appealed to the electricity distribution operator on October 30, seeking an extension of the plant's supply arrangements to allow negotiations over a debt repayment schedule.
The association is now calling for discussions between EPS and factory management to establish repayment terms without interrupting production or affecting employees' livelihoods.
The union also offered a political interpretation of the timing of the disconnections following Serbia's recent parliamentary election. That interpretation has not been independently substantiated and does not establish why EPS acted when it did.
The reported power disconnection and workforce measures have been described by multiple Serbian outlets citing ASNS. Independent confirmation from EPS and Zastava Kovačnica management was not available in the material reviewed for this report.
Potential Implications for Serbia's Defense Industry
Kragujevac remains one of Serbia's established industrial centers, hosting weapons manufacturing, military vehicle production and associated metalworking activities.
The power supply dispute comes during a period of wider scrutiny of Serbia's defense sector, including questions surrounding industrial finances and state-linked enterprises.
In October, AdriaDefense reported on a Serbian Defense Ministry review of Zastava Arms and Zastava TERVO, covering production capacity, existing contracts and investment plans.
Those businesses should not be confused with Zastava Kovačnica, and the reported electricity disconnection does not establish that their operations have been interrupted.
For industrial suppliers, interruptions to electricity supply can affect equipment availability, production scheduling and delivery commitments. However, the duration of the reported shutdown, the plant's outstanding debt and any impact on customer contracts remain unconfirmed.
Whether production resumes will depend on the resolution of the dispute between the manufacturer and its electricity supplier.
Sources: ASNS statement
