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The establishment of the socialist regime had led to thorough political, economic, social, cultural and other changes in Bosnia and Herzegovina. The first decade after the Second World War was marked by the reconstruction of the war-torn country, and great support in that process was provided by the USSR - the main ally of the new Yugoslavia. Emphasis was placed on the intensive development of the industry, which was to be the carrier of the overall economic development of the entire country. In accordance with this strategy, large industrial plants were established in all parts of Yugoslavia, thanks to which there was an intensive process of urbanization of numerous previously dormant communities. However, when there was a conflict and then a break with the USSR, Yugoslavia was forced to partially modify its economic development plans (the so-called Five-Year Plans). These changes in Bosnia and Herzegovina were most felt by cities such as Zenica, which instead of the originally planned Doboj became a Yugoslav metallurgical center, and Novi Travnik, which arose as a result of relocating part of the arms industry from Kragujevac in Serbia to central Bosnia. The factory “Bratstvo" (meaning Brotherhood) was built on a deserted meadow near Travnik in the heart of central Bosnia, and for the needs of housing workers who built industrial plants, as well as for those who worked in those plants, the first residential buildings were built in the form of low-quality wooden barracks. These were the roots of the workers' settlement that gradually grew into a new town called Novi Travnik. The fateful link between the factory and the city, which was established at that time, was not interrupted during the entire socialist period, so the survival and development of Novi Travnik completely depended on the business opportunities in the "Bratstvo" factory. The expansion of the production and plant of the "Bratstvo" also included the construction of new housing, communal, social, health, sports, cultural, catering and other facilities in Novi Travnik. A successful business year in "Bratstvo" meant a secure inflow of money into the local community budget as well as a sufficient number of funds for the work of cultural, artistic, entertainment, sports and all other societies in the city. The same rule applied in the case of bad business of "Bratstvo", and the most obvious example of how important the factory was for Novi Travnik can be seen in the case of a failed business in Ghana. The local authorities in Novi Travnik were absolutely aware of the role of the "Brotherhood" in the development of Novi Travnik and tried in every way to facilitate the functioning of the company, so, except for a few mere misunderstandings, relations between city and factory management were mostly friendly. After all, when the survival of the "Bratstvo" was called into question due to the failed business in Ghana, local authorities were among the first to appeal for the company's salvation, clearly noting that with the disappearance of the factory, the fate of Novi Travnik would be sealed. The paper presents a brief overview of the history of the company "Bratstvo" from its founding in June 1949 until the end of the socialist period in 1990, and analyses the relations between the city and factory authorities in that period. The aim of the paper was to show the importance that the factory "Bratstvo" had for the overall development of Novi Travnik and to determine how much the local authorities were aware of the role of companies in the development of the city. The paper provides insight into the processes that took place in a particular local community, but which can also be found in other industrial cities of Bosnia and Herzegovina and Yugoslavia during the socialist period.