Beretta to Build €125 Million Ammunition Factory in Croatia

Government, Beretta Holding and private investor sign agreement in Zagreb for new small-calibre plant in Obrovac

A memorandum of understanding was signed today at the Banski Dvori government building in Zagreb between the Croatian Government, Italian arms manufacturer Beretta Holding, and private investor Ivan Kapetanović, paving the way for a new small-calibre ammunition factory to be built in Obrovac, Zadar County.

The agreement was signed by Deputy Prime Minister and Defence Minister Ivan Anušić, Beretta Holding Chairman and CEO Pietro Gussalli Beretta, and Ivan Kapetanović. The project represents a joint investment of €125 million, with Beretta holding a 50 percent stake plus one share, while the remaining shares will be split between the Croatian Government and Kapetanović.

Prime Minister Andrej Plenković said the memorandum had been in the works for more than a year and described it as the first step toward building the factory. He called it the beginning of a long-term strategic partnership between Croatia and Beretta Holding, recalling that the Italian company had supported Croatia during the Homeland War. He added that the project would strengthen investment in Zadar County and bring new jobs to the region.

Plant expected to be operational by mid-2029

Beretta will be responsible for technology transfer, supply chain management, and setting up the production lines. The factory is expected to be operational by mid-2029 and, once at full capacity, will employ around 250 people with projected annual revenue of €70–80 million.

Gussalli Beretta explained that Beretta will hold the majority stake because the products are largely complementary to the rest of the group's ammunition division. The company already operates ammunition plants in Germany (its largest), Sweden, Hungary and Switzerland. The Croatian plant will produce a calibre currently made partly in Switzerland - ammunition for machine guns mounted on tanks - as well as primers, the detonating components, for which the German plant is currently running at full capacity.

Part of a wider European push to boost defence industry capacity

Gussalli Beretta framed the Croatian deal as part of a broader European trend, with several governments increasing investment to build up defence-industrial capacity. He noted that the Croatian agreement follows shortly after Fincantieri's July memoranda of understanding with Croatian shipbuilders Brodotrogir Cruise and Iskra Shipyard, and that Beretta had previously signed significant weapons and ammunition agreements with Sweden and Finland.

He attributed the increased European defence investment partly to the nearby Russia-Ukraine conflict and partly to shifts in United States foreign policy. He also mentioned that Beretta is currently trialling anti-drone munitions.

500 years of history and a growing global footprint

The Beretta group, led by Gussalli Beretta, is marking 500 years of history this year, having been founded in 1526 - making the Gussalli Beretta family one of the oldest industrial dynasties in the world. Through decades of acquisitions, the group has grown into a holding company of more than 50 firms and holds a leading global position in small arms, optics and ammunition.

In 2025, Beretta Holding posted revenue of €1.68 billion with EBITDA of €254 million. Revenue is split roughly 60 percent civilian (hunting and sports shooting) and 40 percent defence. By region, Europe accounts for 55 percent of revenue, North America 32 percent, and the rest of the world 12 percent.

Beretta also has a significant U.S. presence, with four factories including a plant in Gallatin, Tennessee. The company recently entered a partnership with U.S. small-arms maker Sturm Ruger, which has revenue of $600 million, through which Beretta will soon hold a 25 percent stake in the company.