Zastava USA: Its not about rifle, it is about factory

mark-hunter

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Its not about rifle, it is about factory.

Zastava is known to produce and export CRF rifles, modem Zastava M70 in all commercial calibers, and two tropical calibers 375 H&H and 458 win mag.
Zastava USA web site is listing 458 win mag, While european web site lists 375 HH and 458 win mag.

For somebody on budget, they can be interested, as there is less and less CRF budget rifles available on the market,
Read: buy while you can.
They are known to have exported barreled actions to Remington, for their Remington 798 model. Those rifles are made on m98 medium lenght action.
Their rifles have reputation of being usable, but not of great fit and finish. Working mans rifle.
They also have a history of being used in Africa (succesfuly).

Factory now is facing financial problems, and may stopped exports for time being. This is under question mark.

I will below, provide link to the source, and then google translator text.
Link to Serbian news NIN, political magazine.
Below is a whistleblower article.

https://nova.rs/vesti/biznis/rasulo...-direktora-odlazi-i-kompletan-nadzorni-odbor/

Google translate:
Qoute:

Chaos in Zastava Arms co.: After the director, the entire Supervisory Board leaves

Due to years of neglect by the state, the employees of the Kragujevac arms factory "Zastava Arms co" still do not know whether they will step on the path of uncertain recovery or continue to rush into liquidation, along the path paved by the cadres of the Serbian Progressive Party (SNS), the former director and president of the Supervisory of the board, writes today's NIN.

Last Friday, some local media published the news that the long-time president of the Supervisory Board of the Zastava arms co, Colonel Ivica Marjanović, was removed from that position that day. However, according to NIN's unofficial information, a "silk cord" arrived from Belgrade in the form of an official initiative to replace the entire Supervisory Board a day earlier during the session of the Assembly of the company.

Before that, the independent factory trade union, and former members of the management, Zorica Đorđević, Milojko Bezaković, unsuccessfully sought the dismissal of Marjanović... And then, on June 29, the Government of Serbia, at the proposal of the Ministry of Defense, asked for the entire board to leave.

That request arrived just as, according to NIN's knowledge, the Assembly of the company was discussing one of the controversial decisions of the board, which approved the sale of weapons to a domestic private company from Temerin, even though it did not pay the usual advance, and later neither paid for the delivered goods. In the meantime, that company went into liquidation, and Zastava arms co was damaged by a couple of million dollars.

The discussion about one in a series of harmful contracts and dubious engagements did not excite the members of the Assembly as much as the dispatch from Belgrade ordering the replacement of the entire supervisory board..

"First there was chaos in the hall, and then a commotion, the real reason of which was not known at first", one of the participants testified for NIN, according to whose words the replacement of the board voted on at the new session, at the beginning of July.

The request from the top surprised many, because until now the top officials of the Ministry of Defense were fiercely opposed to the dismissal of Marjanović, who was considered a confidant of Assistant Minister of Defense Nenad Miloradović Baća. NIN sources claim that until now he not only ignored all demands for his replacement, but openly supported the president of supervisory board and until recently the general director, Mladen Petković. Under their command, Zastava arms co. came to the brink of bankruptcy and the employees now fear whether they will continue to go into liquidation or whether they will, nevertheless, step on the path of arduous and uncertain recovery, for which they will also need generous financial assistance from the state.

NIN sources state that resistance to the removal of Marjanović was broken only when it was threatened that Miloradović, whose position in the Ministry of Defense was seriously shaken due to the growing crisis in Zastava, Krusik, and Sloboda, would "fly" in a package with him. and "Milan Blagojević", as well as due to numerous failed investments, in which tens of millions of euros were sunk.

On June 5, after half a year of powerlessness, the only domestic factory of infantry weapons got a new general director, ballistician Saša Milošević. In that position, he succeeded Petković, a member of the SNS (rulling govt party) , whose mandate expired on November 21, 2022.

If we are to judge by the balance sheets of the two most important companies of special purpose industries - Zastava and Krusik - in which there are about 5,000 gunsmiths on the payroll, Petković will be remembered in both for the fact that he ruined them in every way. In the last four years, the net loss of Zastava Arms exceeded 3.6 billion dinars or 20 million euros. Already in the first year, he managed to reduce revenues from 5.9 to 3.8 billion dinars. And never under his command has Zastava managed to achieve even close to the same income as in 2018, before the "proven staff" of SNS was reassigned from Valjevo to Kragujevac.

They were not happy with him in Krusik either. Even that state-owned enterprise went downhill during the time of Petković, whom employees remember for his cooperation with private arms dealers, close to the top of the state and SNS. First of all, with the companies of Slobodan Tešić, with GIM, which was represented by the father of the then police minister, Nebojša Stefanović, who had passed away in the meantime, and the Internatioal golden group from UEA, whose representative is the former general director of Zastava arms Rade Gromović

According to whistleblower Aleksandar Obradović, Krušik often sold mines to privileged private traders cheaper than the state-owned Jugoimport SDPR, and even below cost price. The workers also warned about excessive party employment, with the most important recommendation being the SNS membership card, so in the four years of Petković's mandate, the number of employees almost doubled. In the meantime, 800 workers lost their jobs, because at the beginning of 2019 there were almost 3,200 on the payroll, and last year less than 2,400.

Both the Krušik unions and the whistleblower Obradović informed all authorities about everything in a timely manner, from President Aleksandar Vučić, through Prime Minister Ana Brnabić, to key people of the Ministry of Defense and members of the National Security Agency, but none of them moved. On the contrary, everyone watched as the factory collapsed, while private arms dealers became richer and richer.

With such "baggage", at the end of 2018, Petković moved from Krušik to Zastava, where the relatively successful management was previously removed without explanation or clear reason. Four and a half years later, Zastava is ripe for bankruptcy, because, according to the consolidated financial report for 2022, its total losses of 3.2 billion dinars or 27.7 million euros are greater than its capital, and production has practically stopped - for the first time not in modern, but in the peacetime history of the factory.

The interlocutors of NIN report that the new director Saša Milošević tells people he trusts that he knew the situation in the factory was difficult, but that he did not believe that it was exactly the way he found it and that the factory would function normally - pay wages, taxes and contributions , settlement of obligations to suppliers and servicing of debts - 500 to 600 million dinars are missing per month. In the meantime, some weapons from the stock were sold, but it is a "drop in the ocean", and new production cannot be started because the suppliers first ask for old debts to be settled.

The president of the factory Industrial Union Dragan Milosavljević told NIN that the management, led by Petković, is most responsible for the hopelessness, but that board is also responsible. In that union, they point out that Petković caused damage to Zastava in the amount of 44 million euros with unfavorable contracts and cite as an example the export of carbines to the USA, contracted at fixed prices with the company Zastava Arms USA from Chicago.

In the meantime, due to the war in Ukraine, all materials and energy have risen in price drastically, costs have increased significantly, but for a company from the USA, which is run by a group of Serbs from Bosnia and Herzegovina, the price of carbines of about 350 dollars has not changed, while it sells them there and five times more expensive. That is why the Industrial Union announces that they will file criminal charges against Petković and others responsible. "A factory cannot collapse and then leave without any consequences," says Milosavljević.

The independent trade union has already filed three criminal charges against the president of the board, because they believe that Marjanović is the most responsible for the accelerated decline since 2017. Especially since the management could not make any decision without being verified by the board, the president of that union, Dragan Ilić, tells NIN and specifies that the criminal charges were filed due to the abuse of official position, that the NO did not appoint a new general director from December 2022 to May 2023, and due to the procurement of protective equipment at higher than market prices.

"Since 2018, direct damage of seven billion dinars has been caused to the factory, which could not have occurred if the supervisory board had done its job. The general manager can make an irregularity, try to cause damage to the factory, but the board should intervene and prevent possible irregularities and damage. For years, we have pointed out to representatives of the Government and the Ministry of Defense in detail what and how the NO works and what consequences it produces. Until now, no one has reacted, thus missing a historic opportunity to further position Zastava weapons on international markets in the current world circumstances, while our warehouses are full of ready-made machine guns and other weapons. Numerous opportunities were missed to prevent the deterioration of Zastava Arms, which is currently just a shell of a factory, with the intervention of the state," emphasizes Ilić and points out that the union is asking the supervisory board to inspect a contract worth two million dollars with a company from Temerin, to which Zastava supplied weapons. but she did not charge him.

Connoisseurs of the situation in the dedicated industry say that it is now clear to everyone why, with the support of Tešić and the then head of the BIA, now the Minister of Police and former Minister of Defense Bratislava Gašić, Petković and Marjanović were brought to Zastava Arms.

Although the president was also informed about everything, Vučić recently blamed the workers "who are absent from work en masse" for all the troubles. Not a word about those who really brought Zastava to the brink of ruin. I guess because SNS party brought them to the factory. And that perhaps, as the employees fear, their goal was to devalue the company so that it could be privatized more easily, read more cheaply. Although opinions on the privatization of the military industry are widely divided.

End qoute
 
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If you stole a rifle while you worked there, you would probably do more time in jail than the real culprits. That is why corruption continues to pay off to the perpetrators.
 
My guess, their govt will cover the losses, and they will move on.
But, this will effect market temporarily.
 
I do know that the Magnum rifles they made had out of round receiver tops and miss aligned scope base screw holes on these receivers. This was noted here in Australia about 5 years ago ( could be more could be less I can not recall exactly when). This was brought to the importers attention and as far as I can make out they stopped bringing the magnum actions into Australia shortly afterwards.

I was told that the machines that made these rifles were old and worn out but there was no sign of the machines being replaced.

Its a shame as they were a good budget rifle that shot better than rifles costing a lot more.
 
Missaligned base screw holes are not uncommon in post 1990 Zastava production, not only for magnum calibers.
Local gunsmiths were correcting this easily, by realligning screw holes on mounts.
Feeding was also another occasional problem. For example load 5 rounds, feeding an issue for the first round, jamming. Load 4 rounds, no issues, etc,
From above article I would say they are also facing labor problems. Not only worn out machinery.

Learning from CZ policy in Checz Zbrojovka, if they make any modernization of machinery, (which wil cost further millions) they will probably be phasing out of mauser clone rifles. But there is no word about it publicly yet.

Some were buying their new rifles, and immediately were giving them to local gunsmiths for restocking and debugging. This is doubling or tripling the initial cost, but making solid product on the end, on mauser action, still for a price much less then new DWM mauser, Perosnally I would consider this, If I were on a search for new mauser for me. (which I am not)
 
Yes they could be rectified by a good gunsmith by why should you have to with a brand new rifle.....in a perfect world. World is not perfect and what you said could be done, may be a requirement if you want a Mauser action. The costs of making a good reliable Mauser action are not cheap hence most companies go to making push feed rifles nowadays when their CRF machinery has to be replaced.

Agreed about labour and other problems they are facing. I only posted the above to show they had also had problems other than what that article said.
 
Yes they could be rectified by a good gunsmith by why should you have to with a brand new rifle.....in a perfect world.
For budget push feed rifle, no. Definitely NO!
There are dozens of models of push feed rifle in real life world, today.

But for a limited budget for CRF action, yes.
In my neighborhood, there is quite a few years since I have seen Winchester m70 in local gunshop, and I have seen only one piece (literally one rifle), ruger guide gun brand new on offer, sold very fast (by my recommendation to a friend).

However, in my same neighborhood, majority of rifle owners do not understand difference between CRF and PRF rifles, so new zastava is not overly competitive on the market, except for bargain price.

Modern sport shooting schools teach accuracy. (there are favorite brands)
Modern hunting schools teach reliable calibers.

So, PRF and CRF differences and understanding is reserved to a minority of gun owners who tend to learn more and understand more then basics.
 
Very unfortunate news, @mark-hunter
I've also read that Prvi Partizan ammunition will also not be available for a while.
 
I've also read that Prvi Partizan ammunition will also not be available for a while.
I was using Prvi Partizan (PPU) 375 H&H ammo for cheap training, but now I cannot find anywhere.
 
The World is turning to shit i have a Interarms MK10 30/06 & a ZASTAVA M70 375 H&H both are great rifles, i hope they stay in business . The war in Ukraine, the COVERT overreaction now a new war in the middle east . the shortage of reloading components. USA & Australia Canada run by Left wing Woke Turds, i am getting depressed:confused: ma y be a new rifle will make me feel better.
 
i hope they stay in business .
Of course they will stay in business. They are govt company, and the one and only contractor for Serbian army, from small arms up to bigger guns.
They cannot closedown. Govt will cover the losses, and move on. There will be a program of financial "reconstruction" on tax payers money, and change of management (maybe) and thats it.

Let me add in later edit: based on this mess, I suspect modernization and creating new designs will not be priority, so they will stick to old models for the time being - speaking for civilian market.
 
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