Brod on Sava (since 1934 Slavonski Brod) has got ideal location somewhere in the middle of the road between Zagreb and Belgrade, as well as Sarajevo, southward from the river Sava. After the annexation of Bosnia and Hercegovina by Austria-Hungary in 1878, when Austria-Hungarians crossed the river in Brod on the Sava and set off further towards Sarajevo, that very same year began construction of the railway line, connecting newly acquired territories with the rest of monarchy. Already in the next year, Brod on the Sava and Bosnian Brod were connected with railway line over the temporary railway bridge, and both cities became important railway junctions which were helpful in the development of trade in this region and attracted workers from all parts of the country. Precisely 40 years later, this powerful impact of railway line gave an impulse to the construction of the Factory for Wagons and Machinery. Rolling stock of the state railways in the years 1918 and 1919 was in such dire condition that demands for overhaul gave prospect for full employment of larger factory capacities.
Substantial development of Slavonski Brod as traffic and trade center between east and west, south and north of our country, founding of the first Factory for wagons and bridges – present day Đuro Đaković brought about sudden economic development in the twenties of the past century, which is why this time period is called “Brod golden age”.