The military industry factory IGMAN d.d. Konjic faced the biggest crisis in the last decade, after the delivery of gunpowder from Serbia – a key raw material without which the production of ammunition is practically impossible – was suspended.
Because of this stoppage, the company was forced to partially halt production lines and send a large number of workers on forced annual leave, which caused serious consequences for its business, but also for the wider industrial and economic picture.
Drop in value and millions in losses
The crisis escalated abruptly. Just 24 hours after the announcement of the partial suspension of production, the market value of the company’s shares fell by as much as 15 million BAM, and according to available data, IGMAN had already recorded a loss of 20 million BAM in the first half of 2025.
The company, which employs about 1.300 workers, represents a pillar of the local economy of Konjic and an important segment of Bosnia and Herzegovina’s (BiH) defense industry. Because of that, the problem caused alarm in political and security circles.
Direct diplomatic intervention
The solution came thanks to the direct intervention of the Prime Minister of the Federation of BiH (FBiH), Nermin Niksic, who, as it was announced, in a conversation with the President of Serbia, Aleksandar Vucic, reached an agreement on lifting the ban on exporting gunpowder to BiH within 48 hours.
“This will enable the continuation of regular deliveries of the key raw material for our production, which is of exceptional importance for the realization of existing contractual obligations and the preservation of business stability,” stated the IGMAN management in a press release.
The company thanked workers and partners for their understanding, and especially emphasized the merits of Prime Minister Niksic, who, as a man from Konjic and a longtime friend of the factory, once again showed, as they stated, “sincere commitment to supporting IGMAN.”
Experts warn: Alternatives are not ready
Although the current crisis has been temporarily alleviated, experts warn that it is a structural problem that cannot be solved overnight. Security analyst Hamza Visca emphasizes that the gunpowder from Serbia is used in precisely calibrated production processes.
“Changing suppliers would require a complete redesign of the process, ballistic testing, and machine adaptation, which can take months. Besides, the European market is already saturated, and orders for weapons and ammunition are reaching record values,” said Visca.
The European Union (EU) plans to invest over 800 billion euros in armaments, which is why the space for small external buyers like BiH is significantly reduced.
Strategic failures: Dependence and lack of a plan
The crisis in IGMAN additionally opened the question of the nonexistence of domestic production of gunpowder, as well as the lack of a joint strategy for the development of the defense industry in BiH. The entities act without coordination, and systemic reserves do not exist.
The Minister of Defense of BiH, Zukan Helez, had already warned earlier.
“I asked them, Do you have a backup option? A serious businessman always has options A, B, and even C. There has to be a backup option. He says, we were so confident that we didn’t have one, well, now they’ve found a backup option. And a start has already been made, I think a few million have been invested in a gunpowder plant in BiH, and that we will have our own gunpowder plant,” says Helez.
What next?
IGMAN announced that in the coming period it will focus on diversifying the supply of raw materials, and that negotiations are underway with alternative producers of gunpowder from Europe and other parts of the world. The company remains committed to preserving jobs, business stability, and fulfilling contractual obligations.
In the meantime, workers will be timely informed through internal communication channels about further steps and the return to regular production.
Igman is not an exception – but a warning.
The crisis in the Konjic factory is not just the problem of one company. It is a reflection of wider systemic vulnerability, the result of strategic shortsightedness and institutional incoherence. If such problems are not addressed through a clear, coordinated, and long-term industrial policy, today it is Igman, tomorrow someone else.
