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Office of Defense Cooperation

ELMECH RAZVOJ d.o.o.

Gatalovec 9A, 49284 Budinscina, C R O A T I A

ZVONIMIR HORVAT, the owner of the company, an electrical engineer, a manager and an advisor, in charge of finding of the potential buyers in coordination and with consent of "RH ALAN". Next to the director he maintains the main contacts with buyers, prospective partners and other important parties dealing in this business. He supervises and controls the information confidentiality and exchange regarding these projects, and takes part in decision making process on all responsible levels. Beside director, he actively takes part in the creation and managing of the company's strategy.

BORIS HORVAT, director of the company ELMECH RAZVOJ d.o.o., an economist by profession. He represents the Company independently, with full responsibility. He is responsible for contacts and cooperation with the Ministry of Defense of the Republic of Croatia and through "RH ALAN" with other partners as well. He takes care of security aspects of the special purpose program. In coordination with professional advisors and the owner, he takes part in a decision making process and supervises execution and achievement of all strategic aims of the Company.

DAMIR TKALEC, a graduate mechanical engineer - technical director. He is responsible for managing and supervision of the production process. He is internationally certified expert for the product quality control. He has been working in designing and development of armaments and military equipment for many years; a specialist for system reliability prognosis according to MIL-standard.

IVICA BOKULIC, a graduate engineer, a technical advisor manager. As highly qualified person with a great experience in the development and organization of armaments and military equipment production, he is in charge of the technical and technological aspect of military production. He worked in Li6ki Osik in the factory of artillery ammunition, thereafter in Kamnik in the Republic of Slovenia in an explosives and gunpowder factory; afterwards he worked in the Croatian institute of naval engineering in the department of submarine armaments.

Dear Sirs,

We are honored to have the opportunity to greet you here in Gotalovec and to thank you for the expressed interest in our company. The company "ELMECH RAZVOJ'' d.o.o. has its roots in the craft founded in 1969. The production plants are at two locations in the north-west part of the Republic of Croatia, one of them is here in Gotalovec and the other in Cret, near Krapinske toplice.

Map of Croatia

 

Distances:
Zagreb-Gotalovec ~ 80 km
Zagreb-Cret ~ 60 km
Gotalovec-Cret ~ 65 km


The company has featured continuous growth process. In 1990 it had 300 employees 20 of which were engineers and university qualified persons. At that time the comp y became a privately owned company limited by shares. Up to 1992 the company produced special electric motors and electric motor drives, electric heating devices with infrared rays, special machines for electric welding, and erected electric installations. The company also specialized in the erection of plants for utilization of geothermal waters.

At t e beginning of the Croatian defense war the whole of the company's production potentials were used for the production of armaments and equipment for the Minis of Defense of the Republic of Croatia. In a very short period the company developed and began production of 122 mm mortar shells and 122 mm round for howitzer D30 and M38, fuse for artillery projectiles, 155 mm round, as well as special sniper rifles. Beside the development and introduction of new products, a also started artillery repair and overhaul services.

During the war, 95% of our capacities were engaged in military production. With the end of the war and decrease of ammunition requirements, we started reorganization of the company.

In line with Croatia's joining the Partnership for peace we established ammunition production according to NATO standards: extended range 120 mm mortar shell, 105 mm round, 155 mm round, standard and with base bleed, 122 HD W round, standard and with base bleed, Winchester sniper rifle of the caliber 308, 300 Winchester Magnum and 338 Lapua Magnum.

Special attention has been given to physical and technical safety of all production plants, especially production objects and storehouses of raw materials and finished pr ducts, for military use. Factory premises, persons and goods entering and leaving they premises arc under 24-hour-surveillance of the responsible guard service. It is not possible to take out of the factory even the smallest quantity of raw materials or production beyond control of the guard service employees. Production process and raw materials consumption are controlled by computer programs. In that way handling raw materials from the storehouse to the production and from the production into the finished products storehouse can be easily controlled. Through computer network authorized persons can, in any moment, at several places take insight into available data.

Documents deemed to be military secret, are kept in conformity with valid regulations and laws of the Republic of Croatia on the military secret. These documents a kept in the safe, in the technical director's office, and are accessible only to authorized persons upon permit of the technical director.
As par the company's production planning this program constitutes 40% of the total production in relation to civil programs.

Base on the pre-war production of heating devices, we have developed special radiators for heating of residential and business premises. Presently, we are producing for the buy -partner from France and are conquering new markets.

By utilization of the natural resources at the location of Gotalovec, we built modern bottling plant for spring water, demand for which increases on the market every day.
For production plant of industrial explosives, of the classical type ANFO, as well as the most modern emulsion explosives, we used existing capacities and conditions and market research in Croatia and the neighboring countries. The confirmation of the program justification and products quality have been proven in blasting services performed for "BECHTEL" corporation building the motorway in Croatia.

170 employees of different professions and profiles are employed in the mentioned programs, out of which I 1 possess university qualifications, 8 two-year post second school qualifications, 23 secondary school qualifications, 116 are skilled workers and 12 unskilled workers.

PRODUCTION OF LIGHT WEAPONS

Within the special small arms program, development of sniper rifles was initiated at the beginning of the 90-s_ The first prototypes of EM 992 sniper rifle with the caliber .308 Winchester (7.62x51 NATO) were produced at the beginning of 1991, while the first prototypes of EMM 992 sniper rifle, of the caliber .308 Winchester Magnum were produced at the middle of 1991.

By mid 1991 the serial production of EM 992 sniper rifle has also begun, while,
the serial production of EMM 992 sniper rifle started only by the end of 1992. By the end of 1993 development of EM 994 sniper rifle was initiated and its first prototypes with caliber .338 Lapua Magnum were produced in mid 1994, while the prototypes with caliber .300 Winchester Magnum were produced by beginning of the year 1995. At th beginning of the year 1995, the caliber .338 Lapua Magnum model was ready for serial production. By the end of the same year the model with caliber .300 Winchester Magnum was also ready for serial production.

The EM 994 model is a completely new construction ill the "bull pup" version, en ling the shortening of the total rifle length, while the EMM 992 model is the classic special purpose sniper rifle for long range target practicing with high reliability of the target hitting . All the models are primarily designated for special military and police forces and they have been produced from the world highest quality materials.

DEVELOPMENT AND PRODUCTION OF ARTILLERY AMMUNITION

We have started to acquire the artillery ammunition production in the year 1991, starting with the standard 120 mm mortar shells. Concurrently we have started to build up the production capacities for the pyrotechnic activities. The new capacities for labor4ion, completion and packaging of combat means were erected on this location in the year 1992.

We have enlarged and modernized machining capacities at this location in order to adopt the 122 mm round as well as the other artillery ammunition production. In
this way vote are capable today, starting from the rough forging of any shell or mine, to
produce technologically independently any mortar or artillery shell. In Krapinske,
Toplice we have introduced the steel cartridge production by welding technology. On the same location we have capacities to produce the wooden packaging (cases, pallets) for ammunition.

We have also adopted the production of mine and artillery fuses. In addition to the standard ammunition production, we have parallel developed the enhanced performance a ammunition such as the 120 mm mortar shell M 95, with range up to 9.500 m, working pressure up to 1400 bars and initial velocity greater than 400 m/s. Besides, we have also developed the 122 mm round with extended range up to 17.300 m.

When we mastered the mentioned technologies, to adopt the ammunition production according to the NATO standards was no longer a problem. Primarily this refers to the 105 mm round HE M 1, 155 mm, HE M 107 and HE M 10 1 round.

In order to keep pace with the world trends, we have been working very intensively to adopt the 155 mm long range (up to 40 km) artillery ammunition production with base bleed. Within the two-three months we will have the means for the range-testing site.
Development and production activities in this field demand many various researches. For this purpose we have arranged for the internal range-testing site to perform the initial testing of new devices, such as fragmentation, initial velocities, pressures etc.

DEVELOPMENT AND PRODUCTION OF INDUSTRIAL EXPLOSIVES

Last year we started production of industrial explosives, in particular EMULSION explosives and ANFO explosives.

Emulsion explosives are explosives of a new generation, produced on the new, sophisticated equipment. Production capacities amount to 2000 t in one shift and satisfy the Croatian market to the fullest extent but also leave possibilities for export of certain quantities.

ANFO explosives are simple explosives of a wide application range. Production capacity in one shift amounts to 2000 t/year. We cover 80% of the Croatian market with these products. Several months ago we established a very good cooperation with Bechtel-International which we supply with explosives, initiating devices and blasting services, particularly the project of the highway - the alignment Bosiljevo-Sv. Rok.

TypeUsed quantities
October - December 2000
Plan for the year 2001
Emulsion explosive65 t500 t
ANFO explosives170 t1.500 t
Initiating DevicesC-12 C-80cca.130.000 m150.000 m
Nonel systemscca. 7.000 pcs120.000 pcs
Blasting services235 t1. 000 t
SumKn2.250.00017.330.000
$270.0002.075.000
Blasted material value270.000 m32.100.000 m3
Kn1.512.000,0011. 760. 000,00
$181.100,001.408.400,00