The history of Arsenal JSCо dates back to 1878, when, by decree of Prince Alexander Dondukov-Korsakov, a special military manufacturing facility was established in Ruse to support the needs of the newly formed Bulgarian Army – known as the Ruse Artillery Arsenal.

Until 1884, the Ruse Arsenal was managed by Russian officers. On February 28, 1884, Professor General Simeon Nikolov Vankov was appointed as the first Bulgarian Director of the factory.

At the beginning of 1891, by Decree No. 10 of Prince Ferdinand, the factory was relocated to Sofia and thus the Sofia Artillery Arsenal, headed by General Stefan Belov was established.

In 1924 by the Decree of Tzar Boris III and by law adopted by the XXI Regular National Assembly, due to strategic reasons the factory was moved to Kazanlak under the name of State Military Factory.

The law established the basic function of the State Military Factory -"to produce and repair all military equipment necessary for the army, the police, the border troops and all state security organs, as well as the testing of new models". Besides the rifles, pistols, cartridges manufactured at the Sofia Artillery Arsenal, for the first time in Kazanlak were produced primers, gas masks (1927-29), double-base and single-base artillery powders (1936-42), brake recoil fluids for the canons and the production of artillery projectiles was modernized.
In the course of the years the factory was enlarging, renovating and developing to become a considerable part of the national economy.
After the World War II started the production of new products of primary importance for the country - three-furrow ploughs, disk harrows, batteries, diesel engines, electric motors, as well as the repair of optical systems and the production of the first lathes and vertical milling machines.

On April 1, 1947, by Decree of the Council of Ministers the State Military Factory became a self-supported economic unit. By Decree of the Council of Ministers of 30.12.1948, the Bulgarian Military plants were consolidated under the special State holding "Metalchim", and the State Military Factory-Kazanlak passed from the Ministry of Defence to Ministry of Industry and Crafts under the name of "Factory-10".

During the years 1956-58 "Factory-10" started the production of a recoilless canon B-10, as well as of assault rifles. The first rifle was manufactured in 1958 and the jubilee-one million-in 1982. The factory diversified into civil purpose machine-tool production: Drilling Machines BK-20 and BK-32 and Milling Machines FU-250 and FU-320.

Later on, were created the conditions for designing and serial manufacturing of other machine-tools with high technical and economic parameters - a large range of milling machines, special purpose machines, units etc.
On 01.12.1960 started the production of hard-alloy inserts.
By Decree of the Council of Ministers from 10.08.1964 the factory was renamed to United Industrial Plant "Friedrich Engels" and became a powerful centre of the national machine building and the military industry. In this connection the factory adopted a new structure divided into seven independent factories.

In 1966, at the premises of UIP "Friedrich Engels", the assembly of the "Bulgar Renault 8" cars was performed, and the production of anti-tank recoilless systems began.

In 1967 a Development Centre was established, which in 1984 grew into an Institute for Machine-tools.
Over the following years, the company expanded its manufacturing capabilities through the establishment of:

• Factory for springs;
• Factory for special purpose machinery;
• Factory for optional equipment (non-standard);
• Production of powders, primers and pyrotechnic products;
• Workshop for CNC machines;
• Computing center etc.

From 1977 till 1989 the factory was known in Bulgaria and abroad as the "Friedrich Engels" Machine Building Plant. During this period, its machinery and equipment were continuously upgraded and modernized, expanding production capacity and enabling a broader range of manufacturing activities. At the same time, the number of employees increased, and the qualification of the technical specialists was further enhanced.
This created the conditions necessary for perfecting the licensed production, design and the serial manufacture of new products, including:

• 1971-72 - 9x18 mm pistol cartridges;
• 1971-73 - 7,62 mm machine gun;
• 1972-74 - 9 mm ""Makarov"" pistol;
• 1976-78 - 7,62 mm tank machine gun;
• 1983 - 23 mm anti-aircraft system;
• 1984-86 - 5,45 mm assault rifles;
• 1985-87 - 5,45x39,5mm cartridges;
• 1986-87 - 122 mm howitzer etc.

On 12.06.1989 the company was registered as Arsenal State-Owned Company, and on 20.12.1991 it was transformed into a Sole Owner Joint Stock Company.
During this period started the production of new machining centers under the license of the Japanese company "Yamazaki". A new Factory for the production of hard-alloy mixtures and inserts and a monolith module system "VARILOCK" was established and equipped under the license of the Swedish company "Sandvik Coromant"
A plant for synthetic diamond was opened in collaboration with specialists from the Institute for Superhard Materials-Kiev.
The company successfully adapted to the new market conditions and aligned its products and technologies with NATO standards.
As of December 3, 1999, the factory is transformed into a joint-stock company Arsenal JSCo, with the following principal activities:

• - casting, forging, hot and cold stamping, mechanical treatment;
• - production and trading of technological and optional equipment, ultra hard materials and tools, small arms and artillery systems, accessories and ammunition, primers, powders, charges, pyrotechnic products;
• - engineering activities.

The new European and Euro-Atlantic orientation of the Republic of Bulgaria determines the new directions in manufacturing and trade. The company’s quick adaptation towards the new market conditions insist for implementation and manufacture of new products. Concordant with products that traditionally had been implemented into production, in the time period of 1989-99 there had been developed and implemented new production technology and articles:

• Sporting and hunting self-loading rifles;
• New modifications of machine guns, assault rifles and pistols in NATO calibres;
• The “Shipka” submachine-gun;
• 40mm “Avalanche” Multi-shot Grenade Launcher of the revolver type;
• 60mm and 81mm mortars /developed by Arsenal experts under the license of the Austrian company “Hinterberger”/
• 60mm mortar bomb;
• New primer-detonators and igniter primers;
• New type of powders and pyrotechnic devices;
• The GH S&F-1-01 and GH S&F-13 sound and flash hand grenades – means for police and anti-terrorist operations against organized crime;
• Ammunition in the NATO calibres;
• New modifications of milling machines, vertical drilling machines, etc.

All developments for manufacture of special purpose products, manufactured by the experts of Arsenal, are protected at the Bulgarian Patent Office as objects of intellectual property. That is why the products bear the trade mark “Arsenal”, which is an internationally protected trade mark.

The period from 1999 to 2026 marks a significant phase of modernization, technological advancement, and expansion of the company’s manufacturing capabilities. In 2009, state-of-the-art production facilities were introduced, significantly enhancing operational efficiency, product quality, and competitiveness.
In 2024, a new high-tech manufacturing facility was commissioned, built in accordance with the highest industrial standards. The plant features advanced production lines, automated systems, and specialized equipment for machining, quality control, and high-pressure testing. Robotic solutions and modern manufacturing technologies were integrated to ensure precision, reliability, and operational excellence.
At the same time, the company launched a strategic expansion program for its propellant production facilities. The first phase includes the modernization of existing facilities and the reactivation of idle equipment, increasing annual production capacity from 1,500 to 3,000 tones. Completion of this phase is scheduled for the second half of 2026.
Through these investments, the company continues to strengthen its position as a modern industrial enterprise, combining decades of expertise with innovative technologies and the highest standards of quality.