Founded in 1950, the company was named after Rudi Čajavec, the first airman of the Yugoslav Partisan air force and People's Hero of Yugoslavia.
In 1950, during the first Yugoslav five-year plan, the government of the Federal People's Republic of Yugoslavia decreed the founding of the Fabrika vojne elektronske opreme i uređaja "Rudi Čajavec" (transl.
[2][3] It was established in the same period as several other medium-to-large state enterprises in the city, which have remained in operation in the 21st century as joint-stock companies, namely: Krajina a.d (construction), Vitaminka a.d. (food), and Autoprevoz a.d.
[4] Originally registered with the Yugoslav People's Army, the factory was reassigned to civil authorities by the Ministry of Defence, and in 1956, the local government, in the form of the People's Committee of Banja Luka (NOO Banja Luka), renamed the enterprise to Fabrika za elektromehaniku i elektroniku "Rudi Čajavec" (transl.
[15] Its other products included television sets (since 1957[16][17]), transistor radios (since 1961[18]), car equipment,[8] loudspeakers, PA systems, and guitar amplifiers.