Activities 26.08.2014.

Development and organization of production of complex combat systems

Introduction of the mission of the `System integrator` (development and production of complex combat systems) into the business strategy of Yugoimport-SDPR has enriched the offer of our company and enalrged the scope of our activities. The mission was adopted with the intention to substitute the production of capital combat systems the capacities for which were lost in the process of desintegration of the Socialist Federal Republic of Yugoslavia (SFRY), as well as to meet the requirements of both the system of defense of the Republic of Serbia and the export as well.

 The mission was outlined following the model of ledaing world manufacturers of complex systems of armaments and defense equipment which adhere to the principle of `System Integrator`. The mission has been verified by the following:

 • Adoption of plans and business programs by the company`s managing authorities (including the representatives of the Ministry of Defense and other autrories of the government of the Republic of Serbia) in past five years.

• Adoption of the strategy of Yugoimport-SDPR to invest into the development of manufacturing capacities for the technologies required for production of ADE systems for which the contracts were signed with both foreign and domestic buyers, and/or which were contained in the development program we adopted ourselves;

• Yugoimport-SDPR`s obtaining of ISO 9000 : 2001 certificate for the design and development of armaments and defense equipment in 2005; and

• The decision of the Ministry of Defense of the Republic of Serbia Confidential No. 2637-9 of December 11, 2007, granting permision to Yugoimport-SDPR to produce armaments and defense equipment.

 The factors which dictated global transformation of defense industry complexes and the approach towards organizing of the development, production and sale of ADE on the world market are the following:

 • Change of global military and political environment, as well as change of typical threats and the mode of carrying out of war actions, and general decrease of defense budgets;

• Orientation towards export as unavoidable action recognizing the requests of contemporary market which include economy, speed of reaction and flexibility

• Merging of the companies and creating of mega companies – the so called `system integrators` of ADE manufacturers for all services of the armed forces

• Closing down of redundant functions and duplicated plants

 The procedures in selection and realization of development projects encompass the following:

• Market research and follow up of world trends of development, production and proliferation of complex combat systems on the basis of constant reading of trade journals and literature, as well as studying of the trends at international ADE exhibitions

 • Follow up of the trends of equipping of complex systems, and meeting of the buyers` necessities based on available publications and other sources gathered in direct communication with the representatives of the buyers on whose market Yugoimport-SDPR is present, thus enabling the defining, namely correction and adjustment of the offer in the light of the basic tactical and technical requirements of the client in the initial phase of discussions on potential business deal

• Analysis of market potential of new combat system, as well as analysis of the possibilities of our industry (having in mind the support of available foreign technological partners) and the appropriate resources – both human, material, time and technological resources required for realization of the project. Analysis of the attraction of the product in question for the requirements of the Military of Serbia

• Using our own sources to finance of the initial phase of development of complex systems up to the level of technological demonstrator or producing a prototype, which is then followed by financing of continuation of further development up to the level of entering into the production (namely commencement of serial production) either out of our own sources or with the buyer`s funds provided by a contract signed after the presentation of a prototype system to the buyer

 Achieved Results and Current Plan for Development of Complex Combat Systems in Yugoimport-SDPR

In the last ten years more than hundred development projects has been opened. Aproximately  fifty percent entered in the full rate serial production and the remain projects are in the different development phases.

The 2012 annual development plan has provided for the realization of the total of 43 development tasks.

Resources for Realization of Production Strategy of Yugoimport-SDPR

 Internal production resources of Yugoimport-SDPR include the following:

• Department for production staffed with manpower with substantial experience and references in

• In-house production facilities, above all – The Complex Combat Systems - BSS in Velika Plana managing major companies and business systems

• Own production plants

• Financial and managerial potential necessary for realization of production projects.

External production resources, namely the resources of the technological partners of Yugoimport-SDPR include the following:

• Defense industry and other production companies of the Republic of Serbia

• International technological partners engaged either on the projects of joint production or as the suppliers of highly sophisticated subsystems and components

 Production Following the `System Integrator` Model

 Organizing of production following the model of `System Integrator` icludes the following:

• Mastering of serial production (organization and financing of the same)

• Management of production (contracting and organization of component part production)

• Final assembly

• Testing

• Delivery of the product to the end user, and

• Support in the course of product start-up period and during exploitation of the same

 Basic Principles of Organizing of Production

 Basic principles of organizing of production complex combat systems include the following:

• Maximum strengthening and technological improving of prospective part of our national industrial basis which has the potential to be included into the production of complex combat systems, especially as far as mechanical and electrical engineering, electronics and optoelectronics are concerned, by realization of particular projects and contracts, different types of joint finance and investment in new technological lines. For exhample, projects of production of NORA system engaged more than 30, and LASTA more than 15 different companies

• Productional orientation towards technologically less spectacular projects characterized by relatively fast mastering of production, and therefore quicker commercial realization and the increase of assets for the manufacturer

• Maximum utilization of civil components and technologies (COTS), i.e. reorganization of production from specialized towards more general technological base

• Engagement of a number of smaller and medium companies which are productionally more efficient and highly flexible (quicker mastering of production of certain component parts on the basis of available technologies), and integration of the same into the system of quality control.

 The System of Standardization of the Quality of Production of the Subcontractors for the Requirements of Yugoimport-SDPR

The companies of the defense industry of Serbia posess appropriate certificates (Military quality control).

In case the suppliers do not posess appropriate quality control certificates, they must obtain the same before entering the contract with Yugoimport-SDPR. Yugoimport-SDPR engages either own experts or specialized institutions for the process of certification.

The process of certification includes the following:

• Trial manufacture

• Pre-qualification analysis

• Mastering of production

• Serial manufacture

 Completed Production Projects

• NORA B-52 K0 and KE

• FCS Battery Sets (artillery electronic goniometer, balistic computer, gun display unit,gun rectification system, communication equipment-in portable and vehicle mounted configuration)

• Logistic vehicles-artillery ammunition supply vehicles with ammunition module handling system

• Modernization of howitzers M56 105 mm and delivery of modernized sets, as well as modernization of howitzers M101 105 mm

• Mortars 120 mm M 74

• Production of personal balistic protection-balistic plates and vests

• Production of aircraft Lasta-95 – joint venture of UTVA and Yugoimport-SDPR

• Production of navy gun 20 mm with integrated fire control system

• Organization of the production of helicopter modernization set(attack-navigation system, side door mounted HMG with FCS and guided and non guided pilon mounted weapons-containers with guns, rockets and medium range ATGW)

• Armoured reconnaissance and command vehicles BOV M10/11

 Complex Combat Systems - BSS

 „Complex Combat Systems“ d.o.o. is a legal successor to “Belom“ d.o.o. Company for the production of and trade in hunting ammunition. Belom Company was founded on 20th November 1995. and was named Belom which is an abbreviation for Belgrade Hunting Ammunition (Beogradska Lovačka Municija).

The main line of business of Complex Combat Systems d.o.o. is the production of complex combat systems and hunting and sporting shot ammunition.    

In the course of almost 20 years of existence within the field of production of and trade in hunting and sporting shot ammunition, BELOM d.o.o. (now Complex Combat Systems d.o.o.) has managed to create an image that stands for high quality and to compete on an equal footing with the most renowned world manufacturers of the said ammunition such as Baschieri, RC, Fiocci etc.

On the other hand, within one year as of its founding, Complex Combat Systems Company has managed to manufacture NORA 155 mm self-propelled howitzer and LAZAR 2 combat vehicle prototype in the production facility Morava located in Velika Plana. Beside the production, BSS has also been active in the field of foreign trade in armaments and defense equipment.  

Complex Combat Systems d.o.o. managing bodies are as follows: general meeting and director.

The general meeting of the company is comprised of the Company Member, namely the Founding Member.

The director of Complex Combat Systems d.o.o. is also appointed by the Company General Meeting at the suggestion of the Director of the Founding Member. 

Complex Combat Systems management comprises:

Director

Deputy Director

Directors of Morava production unit in Velika Plana

Director of Belom production unit in Nikinci

Mission and Vision

The business strategy of Jugoimport-SDPR J.P., the founder of Complex Combat Systems, involves the participation in the world market in the capacity of marketing and commercial integrator of the Serbian Defense Industry, thus integrating the range of products and development projects of Complex Combat Systems. The role of Complex Combat Systems in the scope of this strategy includes the utilization of its own production capacities and human resources to meet the needs of the market and contribute to the successful completion of all the deals closed by Jugoimport SDPR pertaining to: 

 Mission

Complex Combat System business policy is oriented towards three missions:

1.  Management of development and organization of production of complex combat systems,

2.  Management of development and organization of production of hunting and sporting shot ammunition and

3.  Providing services to third parties using the state-of-the-art equipment for metal processing.

 Vision

Relying on its own production of complex combat systems and hunting and sporting shot ammunition and using the state-of-the-art metal processing machines (machining center, CNC machines, metal cutting laser and presses for swaging of special sheet metal), Complex Combat Systems will realize the vision of fully closing the process of complex combat systems production, thus substantially minimizing the reliance on importation and engagement of subcontractors whose quality of supplies, as well as delivery terms, could not meet the set requirements.

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