A N A LYS I S Defence Industry in Central Eastern Europe Analysis of the Slovenian Defence Sector Katja Geršak/Jelena Juvan This paper analyses the contemporary Slovenian defence industry, with particular emphasis on current capabilities, structure, and strategic importance within the EU-NATO framework. A brief historical overview of the Yugoslav peri­od and the transition after independence is included to provide essential context for today’s industrial and institu­tional arrangements. The main emphasis is placed on pres­ent-day developments, including technological orientation, dual-use innovation, and international integration. The chapter concludes by assessing the sector’s economic con­tribution and future potential. 1. Historical Review: Defence Industry during Yugoslavia and after Independence After 1945, Yugoslavia systematically established an exten ­sive defence-industrial complex. In Slovenia, key facilities included Barutana Kamnik(explosives), Železarne Ravne (special steels and weapons components), TAM Maribor (military trucks and light armoured vehicles), and Iskra (communications, electronics, optics, and lasers)(Završnik, 2014). Due to the political split with the Soviet Union in the late 1940s, Yugoslavia invested substantial resources in de ­veloping its own military industry, which led to significant technological growth in the 1970s and 1980s. During the so ­cialist era, Yugoslavia maintained one of the largest de­fence industries in the non-aligned world, ranging from in­fantry weapons and ammunition to armoured vehicles, electronics, shipbuilding, and aircraft production. The in­dustry was able to meet up to 80% of the requirements of the Yugoslav People’s Army(JLA). The industry was highly specialised, technologically advanced, and strongly ex­port-oriented. Slovenian firms delivered critical sub-compo­nents that were then integrated into larger platforms manu­factured in other republics. Because of Yugoslavia’s strategy of dispersing defence production geographically for political and security reasons, Slovenia’s industrial capacity was es­sential for federal autonomy. Slovenian companies, however, were limited despite their innovations because decisions were centralised in Bel­grade and independent export was prohibited; all exports were conducted exclusively through the state company SDPR. By the end of the 1980s, the Slovenian defence in ­dustry comprised three major military factories and 25 larg ­er subcontractors, and produced more than 220 million pieces of ammunition and equipment annually. The War for Independence and Development of Slo­venia’s Defence Sector Independence brought significant challenges for the Slove­nian defence industry. The breakup of Yugoslavia, the end of the Cold War, and the UN arms embargo caused sales to Analysis of the Slovenian Defence Sector 1