The history of the factory dates back to 1799, when the steel manufacturing workshops were founded in Cugir, one of the first metallurgical factories in Transylvania, steel profile. The reasons which led that time Austro-Hungarian authorities to set up this factory in Cugir were mining practiced around the settlement and favorable natural conditions. The quality of the steel produced here was appreciated both inside and outside the Austro-Hungarian Empire borders.

The  expansion of the facility began in 1926, through the construction of  new production halls. The war led to the militarization of the plant which, at  that time, was managed by specialists in the field of modern weapons manufacturing. Parts and assemblies for artillery techniques were produced during the cooperation with the London company "Vickers Armstrong Ltd." The takeover by the Czechoslovak firm "Zbrojowka-Brno" led to a redesign of the production for infantry weapons and ammunition, based on documentation license.  During the Second World War, the German concern "Herman Goring" took over  the compnay's shares.

The accumulation of high experience and high technical potential ensured the success in designing and putting into production the first Romanian-designed weapon, 9mm caliber submachine gun, Parabellum, "Oriţa" type. Further industrial developments in Cugir are related to the plant, creating over the time a well-known brand named CUGIR.

Today, Uzina Mecanica Cugir SA owns the investment "Manufacturing modernization of ammunition and infantry weapons by assimilating NATO products." By purchasing the manufacturing lines for NATO products, the company has a technological base comparable to renowned manufacturers in the defence industry. The procurement of equipment and technology related to the manufacture of Boxer anti-corrosive primers and infantry ammunition 5.56 x 45, 7,62 x 51 and     12,7 x 99 calibers leads to a high level of automation, low energy consumption, special accuracy in production, high quality finished product, flexibility, high labor productivity. From a strictly technical point of view, the company acquires modern technologies for brass case and non-corrosive ammunition (NATO specific), that opens a wide perspective concerning subsequent assimilation of other types of ammunition.