Serbia and ‘Israel’s’ Elbit Systems to open joint drone factory
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Serbia and ‘Israel’s’ Elbit Systems are set to inaugurate a joint combat drone factory in mid-September 2026.
Serbian President Aleksandar Vučić announced the timeline during a press conference in Belgrade amid Ukrainian President Volodymyr Zelensky’s visit.
“Serbia will open a drone factory together with the Israelis,” Vučić stated, noting the ceremony could occur around September 15 or 20 and that Ukrainian representatives had been invited.
The facility is planned for the Simanovci industrial zone, about 30 kilometers west of Belgrade. Elbit Systems will hold a 51% majority stake, with Serbia’s state-owned arms company Jugoimport SDPR (or SDPR) owning the remaining 49%.
The plant will produce short-range attack combat drones, longer-range advanced unmanned systems, and electronic warfare systems to modernize Serbia’s defenses and support potential exports.
The joint venture builds on earlier major contracts: a roughly $335 million deal in 2024–early 2025 for PULS artillery systems and Hermes 900 combat drones, followed by a five-year agreement worth about $1.63–1.64 billion signed in August 2025 covering long-range precision strike systems, AI-powered UAVs (including tactical and personal drones), ISTAR capabilities, electronic warfare, electro-optical and night-vision systems, and related upgrades.
Vučić had first publicly discussed a joint drone factory months earlier, describing plans for “serious drones” and a partnership that would deliver technology and manufacturing know-how.
