ARSENAL INC

  The history of Arsenal dates back to the beginning of 1878, when a special factory -Artillery Arsenal of Rousse- was established for the needs of the newly created Bulgarian army. Until 1884 Russian officers acted as managers of this Artillery Arsenal, when Prof. General Simeon Nikolov Vankov was appointed as the first Bulgarian director of the factory. At the beginning of 1891, by decree of Prince Ferdinand, the factory was transferred to the capital in Sofia and so was established the Sofia Artillery Arsenal.

  In 1924 by decree of Tsar Boris III the factory was moved, due to strategic reasons, to its present location of Kazanlak under the name of State Military Factory. The law established its basic function, "To produce and repair all military equipment necessary for the army, the police, the border troops and all state security organs, as well as the testing of new models". Besides the rifles, pistols, and cartridges manufactured at the Sofia Artillery Arsenal, the Kazanlak plant produced primers, gas masks (1927-29), artillery powders (1936-42), and brake recoil fluids for cannons, and modernized the production of artillery projectiles.

  In the course of the years the factory was enlarged and renovated, developing to become a considerable part of the national economy. After World War II production began of new items of primary importance to the country - agricultural implements, batteries, diesel engines, and electric motors, as well as the repair of optical systems and the production of the first lathes and vertical milling machines. Since 1947 by decree of the Council of Ministers the State Military Factory became a self-supported economic unit.

  In 1948 the military plants in the country merged, and the State Military Factory-Kazanlak passed from the Defense Ministry to Ministry of Industry and Crafts, under the name of "Factory 10". During the years 1956-58 Factory 10 started the production of assault rifles. By 1982 one million assault rifles had been manufactured.

  In 1964 the factory was renamed (until 1989) United Industrial Plant "Friedrich Engels" and became a powerful centre of the national machine building and the military industry. In the sixties the factory expanded the production of machine-tools: a large range of milling machines, special purpose machines, etc. The licensed production of new ordnance items followed:

    * 1971-72 - 9x18 mm pistol cartridges;
    * 1971-73 - 7.62 mm machine gun;
    * 1972-74 - 9 mm pistol;
    * 1976-78 - 7.62 mm tank machine gun;
    * 1983-     - 23 mm anti-aircraft system;
    * 1984-86 - 5.45 mm assault rifle;
    * 1985-87 - 5.45x39.5mm cartridges;
    * 1986-87 - 122 mm howitzer etc.

  In 1996 IPP "F. Engels" began the assembly of automobiles and started the production of anti-tank recoilless systems ATGL-L and ATGL-H.

  In 1989-90 production of new machining centers began under license from the Japanese company Yamazaki. A new Factory for the production of hard-alloy mixtures and inserts and a monolith module system Varilock was established and equipped under the license of the Swedish company Sandvik Koromant. The company has demonstrated a rapid adaptation to the new market conditions and orientation to the NATO structures and the EU, adopting armament systems according to NATO standards. Recently the factory has become a limited liability company -Arsenal Ltd.