WARSAW — An Israeli-Serbian consortium has purchased Montenegro's leading defense company, Montenegro Defence Industry (Vojna Industrija Crne Gore), the country's Privatization and Capital Investment Council said in a statement.

The two investors, Israel's A.T.L. Atlantic Technologies Ltd. and Serbia's CPR-Impex, have agreed on an investment package to ensure the development of new products, worth some €400,000 (US $450,000), on top of the €680,000 euros it will pay the Montenegrin Treasury.

"The consortium plans to significantly increase the export of arms and military equipment produced in Montenegro and… [invest] in new production capacity," the statement said. The deal was finalized on March 4.

Under the deal, Montenegro Defence Industry will is to introduce new products by the end of 2015, and maintain the company's workforce at its current level over a period of at least three years, according to the statement.

The group comprises five entities:

• Jugoimport Mont, which specializes in foreign arms trade

• Krusik 4. Novembar, manufacturer of missile engines, detonators and various equipment

• Fets 1. Decembar, producer of electronic and communication systems;

• Explosives maker Poliex

• Prva Petoletka Namenska, which specializes in manufacturing hydraulic and pneumatic systems.

The Montenegrin group says it exports its products to some 20 countries. These include the UK, Germany, Greece, Macedonia, Syria, Pakistan, India, China and Egypt.