August the 12th, 2025 – Croatian companies are increasingly engaged in military manufacturing, with significant growth in the number of enterprises showing interest in moving towards that segment.
As Poslovni Dnevnik/Marija Brnic/Davor Ivankovic/VL writes, the fact that more and more Croatian companies intend to base their development and production on military production is proven by the significantly rapid growth of the membership of the Croatian Cluster of Competitiveness of the Defence Industry (HKKOI). Back in 2024, this cluster had 64 Croatian companies in it, and in 2025, their number has increased to 86 members so far.
Goran Basarac is the president of the cluster and the head of the state Alan Agency, through which the export of military products and equipment is organised. He has confirmed that they are being approached by new Croatian companies which are mainly small and medium-sized, as well as much larger ones. All of them are seeking information about EU funding for defence and security, and all of them want to connect on a project basis within the framework of existing and upcoming EU funding related to defence and security. “There are quite a few companies that are currently looking to expand their portfolios to the defence and security segment, and it’s becoming obvious that they still have to find their way in this demanding system,” revealed Basarac.
Just four years ago at the largest military and security equipment fair, MILIPOL in Paris, this cluster premiered some products from the Croatian defense industry. They were products made by the Croatian companies Orqa, Audio Video Trend, Construomat and Utilis. Looking at the situation four years later, the whole world has not only heard of Orqa from Osijek, but it has gained international respect. Basarac noted that the cluster is once again collecting interesting project ideas and concepts that will soon be presented to the government.
“We’re active in the segments of unmanned systems, not only aerial, but also naval. We’re also active in the segment of lethal means (UBS), in the development of the production of electronic igniters for certain lethal means, and in the segment of the development of explosive charges. There’s also gunpowder and rocket fuel,” said Basarac. Interesting ideas from Croatian companies looking into military production come from the “electronic warfare” segment, as well as from cyber security and protection systems.
“I think it’s good that the government has established an Interdepartmental Committee for the Defense Industry because we need to address potential strategic projects for Croatia there. We also need to address certain things that the system is currently lacking,” Basarac pointed out.
In more recent months, we’ve increasingly witnessed announcements from many large industrial systems considering joining the military niche. Good examples of this are AD Plastik from Solin and the mineral fertiliser manufacturer Petrokemija from Kutina. There are also some other large Croatian companies that haven’t been involved in military production since the end of the Homeland War. They are now also reportedly considering renewal. In addition to Orqa’s incredible drones, other Croatian companies which have serious opportunities in military production and to participate in the SAFE and ReArm programmes first require the government’s approval.
In the current joint procurement programme (EDIRP), Basarac thinks that the ballistic helmet manufacturer Šestan-Busch has the best chances of all. The European Defense Agency (EDA) tender should be held soon, where this Croatian manufacturer will be able to adequately participate and submit its offer. The Ministry of Defense has adequately followed up on this and Basarac thinks that it could end up being very significant for Croatia.
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