In December 2003, Muehlbauer received a draft contract from the National Bank of Serbia. Just four years had passed since the Kosovo conflict and the NATO bombing campaign, making Serbia an unusual business partner at the time. Following extensive discussions that fostered mutual trust, Muehlbauer accepted the project and signed a contract with the National Bank of Serbia, which had been commissioned by the Serbian Ministry of the Interior to establish a complete production line for national ID cards.
The project marked a major milestone for Muehlbauer. For the first time, the company was entrusted not only with supplying the production equipment but also with providing the associated services. Despite political changes and the challenges they brought, the partnership remained strong. Production of Serbian ID cards began in 2007, with approximately 4.5 million cards produced.
Shortly afterwards, the National Bank of Serbia launched a tender for the production of electronic passports. Under President Boris Tadić, Serbia sought closer integration with the European Union, including visa free travel for Serbian citizens within the Schengen Area. One of the key requirements was the introduction of passports that met European Union standards.
The required production equipment was manufactured at Muehlbauer's facility in Malaysia. The successful implementation of the project enabled Serbia to introduce its new passports, and from December 2009 Serbian citizens were granted visa free travel for short stays within the Schengen Area. For Muehlbauer, the project became an important reference and opened the door to further international business opportunities.
Building on this successful partnership, Muehlbauer decided to establish its own production site in Stara Pazova, near Belgrade. Construction began in October 2011, and manufacturing of smart products and system solutions commenced in spring 2012 with an initial workforce of 100 employees.