Bosnian manufacturer expands into new markets with EBRD and EU support

This article is brought to you in association with EBRD.

In Bosnia and Herzegovina‘s industrial landscape, one company stands out: GAT. Specialising in manufacturing parts for the aviation, motorcycle, automotive, lighting, measuring technology and medical industries, GAT has carved out a niche for itself. With expertise in computer numerical control (CNC) milling, CNC turning and surface protection, it has adopted an export-oriented approach, supplying its specialised products to various EU countries.

With a workforce of 125 dedicated employees, 22 per cent of whom are women, GAT prides itself on its gender-inclusive top management team, which is 50 per cent women. GAT isn’t just about diversity, however, but quality, efficiency and innovation.

GAT has come a long way from humble beginnings with just one used machine. Today, the company boasts a fleet of around 30 cutting-edge metal-processing machines for crafting top-of-the-line aluminium parts. However, GAT recognised that it had a crucial gap in its machinery: the absence of a CNC machine capable of high-speed, precise and autonomous operation.

Determined to maintain its market leadership position, GAT made a strategic decision. It invested in a new CNC lathe, facilitated by the EBRD and the European Union (EU) under the Go Digital in BiH programme. The investment not only enables autonomous operation at night, but also boosts production capacity and opens doors to new market opportunities.

“This strategic investment is a game-changer for us,” explains Company Director Almir Gvožđar. “It will streamline production processes, elevate product quality, enable just-in-time delivery and boost production automation. Embracing automation and digitalisation has bolstered our competitiveness, fostering continued growth in turnover and employee salaries. Embracing automation and digitalisation is not just about the future, it’s about staying ahead in the present.”

The newly acquired machine can be connected to a central base unit and real-time work monitoring system, allowing the company to monitor its operation 24 hours a day, thereby optimising the production process. In addition, the digital information delivered by the machine results in fewer and shorter downtimes.

GAT’s commitment doesn’t end there. As a steward of the environment, it prioritises sustainability in all aspects of its operations. The new investment isn’t just about business growth, it’s about contributing to environmental protection by reducing scrap in the production process.

Manuela Naessl, EBRD Head of Bosnia and Herzegovina, underlined the vital role of digital transformation, saying: “Digitalisation is vital for small and medium-sized enterprises (SMEs), enabling enhanced efficiency, improved competitiveness, expanded market reach, a better customer experience, access to valuable data insights and increased resilience in today’s fast-paced business landscape. Our provision of financial support aims to incentivise local enterprises to embrace digitalisation and automation, and we are delighted to witness the positive impact of our assistance on numerous SMEs in Bosnia and Herzegovina.”

EU grant funding, alongside EBRD lending, is key to driving the digital transformation of companies in Bosnia and Herzegovina, especially SMEs. 

Stefano Ellero, Head of Cooperation at the EU Delegation to Bosnia and Herzegovina, said: “The fact that GAT’s management policy is gender-inclusive is one more reason to trust that Bosnia and Herzegovina’s businesses sector is capable of reaching out and remaining competitive on demanding international markets. The Go Digital in Bosnia and Herzegovina programme pioneers automation and digitalisation for SMEs in Bosnia and Herzegovina, focusing on green technologies. I am glad that this programme helps SMEs succeed in European markets by integrating EU standards, preparing them for the changing digital environment and compliance.”

The primary goal of the Go Digital in Bosnia and Herzegovina programme is to provide financial support − together with local partner financial institutions (ProCredit Bank, UniCredit Bank, Raiffeisen Bank, Intesa Sanpaolo Bank and Sparkasse Bank) − to SMEs to enhance their competitiveness and help them align with EU standards. At the same time, the programme strives to encourage the integration of automation and digitalisation into business workflows by facilitating investments in digital infrastructure.  

The programme is led by the EBRD, with the support of the EU, which provides investment grants of up to 15 per cent of the loan amount.