State-owned Bulgarian arms producer VMZ Sopot has signed a technology transfer contract with Israel’s Aeronautics, allowing VMZ Sopot to start producing unmanned aerial vehicles (UAV), the economy ministry said on Thursday, reports Reuters. 

“The contract will give VMZ Sopot the opportunity for its own brand Bulgarian unmanned aerial vehicles, their service and maintenance,” the ministry said in a statement after the signing.

Adi Cohen, marketing director at Aeronautics, said the Israeli drone maker’s aim was to set up an assembly and production line of UAVs in Bulgaria and approach new markets together with VMZ Sopot.

In June, during a visit to Jerusalem, Bulgarian Prime Minister Boyko Borisov said the Balkan country was interested in joint drone production with Israel.

Israel rivals the United States as top UAV exporter and has cooperated with Russia and India on drone technologies.