Factory Between Two World Wars 

In January 1919, at Paris peace conference, it was announced that the damage that the Military-Technical Works suffered is 70% of its pre-war value.

During the same month, 400 workers returned from the French military factories and first repaired workshops were put to use in July.

The name of Military-Technical Works was changed into Artillery-Technical Works (ATZ) on November 30, 1923.

During 1924 and 1925, the Ministry and FN (Fabrique Nationale, Herstal, Belgium) signed a contract on the purchase of the licence for production of rifles  7.9 mm M 24 and ammunition 7,9x57 mm. Factory for production of rifles and infantry ammunition was also built.

The factory for production of infantry ammunition started to work on March 22, 1928 and the factory for production of rifles and ammunition was put to operation on October 15 (75th anniversary of first casting of cannons in Kragujevac). The capacity of new plants was 200 rifles and 200,000 rounds per day. The factory for production of rifles was equipped with 1,250 machines. 

During the same year, workers' residential area Old Workers' Colony was built for the needs of the workers and a contract was signed with the municipality on common financing of building of waterworks.

This is a period of quick ascent of the factory so in 1929, within ATZ a ew factory of fulminate, for production of all types of detonating primers. During 1930, the factory started the production of signal pistols 26 mm M 1929 on the basis of Czechoslovakian licence. The whole institution was again named Military-Technical Works on March 4,1931.

On August 9, 1933, at the session of Ministry Council, it was concluded that the Military-Technical Works (VTZ) in Kragujevac was the most important centre of military industry in Yugoslavia. Telephone exchange was built within the Works during the same year.

In July 1936, the factory got licence from Czechoslovakian Zbrojovka from Brno to produce light machineguns 7,9 mm M 1937.

Waterworks, financed by Military-Technical Works was build and put to work in March 1938.

The colony containing 384 flats on Stanovljansko polje was finished.

In 1939, based on patent no. 12.939 dated May 1, 1935 for Small-bore shooting device by Lazar Jovanovic  production of small bore rifle 5,6 mm started. Basically, it was subcaliber barrel with adapter 5,6 mm for standard military rifle 7,9 mm M.24. Based on the ideas of the same designer, Military-Technical Works produced pilot batch of competition rifle Model L. J. and the prototype of pistol '380ACP, system Jovanovic M 1931.

The production of light machine gun based on Czech licence Zbrojovka started in 1940.

The factory befor the war was a European giant with 12,000 employees and 10,000 machines. Germany occupied Kragujevac and Military-Technical Works on April 11, 1941.