Serbia opens Israeli drone factory as defense ties with Elbit deepen
The plant will assemble Israeli-designed combat drones for Serbia and potentially other militaries, with at least three more factories planned across the country.
Serbia has opened a factory to assemble advanced Israeli-designed drones for its own military and armed forces in other countries, marking a new stage in the country’s rapidly expanding defense relationship with Israeli defense company Elbit Systems.
Serbian President Aleksandar Vučić announced the opening Thursday, saying the plant would employ around 100 people and produce what he described as “state-of-the-art” Israeli-designed drones. The Serbian government and its Israeli partners also expect to open at least three more factories across the country, he said.
The announcement provides the first indication that the cooperation between Serbia and Elbit is moving beyond the purchase of Israeli weapons systems toward local production.
Elbit holds a 51% stake in the venture, with Serbia’s state-owned Jugoimport SDPR holding the remaining 49%. The factory is located in Simanovci, about 30 kilometers west of Belgrade.
The facility had been expected to open around mid-September. In August, Vučić said the factory would produce two types of combat drones: a short-range, high-payload aircraft with rotating wings and a faster, longer-range model with a flight ceiling of more than six kilometers. The latter is expected to be more advanced than Serbia’s existing Pegaz drone. Engineers from Serbian aircraft manufacturer Utva, which is owned by SDPR, are also expected to participate in the project.
The factory is part of a much broader military modernization effort by Serbia. In 2024, the country signed $335 million in contracts with Elbit covering PULS artillery systems and Hermes 900 combat drones. A year later, Serbia signed a further agreement worth $1.6 billion covering drones, long-range missiles and electronic warfare systems.
CTech reported in August 2025 that the $1.63 billion deal included Elbit’s Hermes 900, its largest drone, as well as long-range precision missiles, electronic warfare systems and command-and-control platforms. Elbit had initially withheld the identity of the customer, citing a confidentiality request, before the customer was identified as Serbia.
Vučić provided few details about the factory when announcing its opening. Journalists were not invited to tour the facility because of the confidentiality of the production process, and the Serbian president released only limited footage. He said the public would be impressed by what was being produced there.
