At the first stage, the Diamond Aircraft's investment will amount 10 million euros.
The agency's director, Slobodan Mikec, and the director of the Diamond Aircraft Austria Christian Dries, last Thursday agreed that an agreement on the matter would be signed until the end of this month.
The agreement is a result of three-year-long negotiations.
The Croatian factory is expected to be put in operation in 2008. It will manufacture parts for aircraft wings.
The Canadian company is planning also to sell GA aircraft and spare parts and do repairs to and overhaul flying machines at the Varazdin aiport.
"Diamond Aircraft Industries Inc. is dedicated to supplying the General Aviation market with the ultimate flying machines - safe, economical, inspiring aircraft. From facilities in London, Ontario, Canada and Wiener Neustadt, Austria, Diamond produces single and twin-engine propeller aircraft and a single-engine jet aircraft," the company says on its web site.