Croatia strengthens global energy role with €260m transformer factory expansion

(Photo: KONČAR)

A new phase in Croatia’s industrial and energy development has been marked with the ceremonial laying of a foundation stone for the expansion of production capacities at KONČAR’s large power transformer factory.

The project, led by KONČAR – Energetski transformatori (KPT), is a strategic joint venture between Siemens Energy and KONČAR. Valued at approximately €260 million, the investment was first announced last summer.

The expansion is expected to further strengthen the company’s position as one of the world’s leading manufacturers of large power transformers, while significantly increasing production capacity.

The investment comes at a time of strong global demand for electricity transmission and distribution equipment, reflecting wider trends linked to the energy transition. It also represents a major step forward for Croatia’s domestic industry.

The ceremony was attended by senior government officials, including Prime Minister Andrej Plenković, alongside representatives from Siemens Energy and the KONČAR Group.

Highlighting the project’s significance, Plenković described it as part of a broader €800 million investment cycle in the energy sector, noting that the expansion will create around 350 new jobs and strengthen Croatia’s industrial and export capacity.

(Photo: KONČAR)

Founded in 1995, KONČAR – Energetski transformatori is the first joint venture between Siemens Energy and KONČAR. Siemens Energy holds a 51% stake, with KONČAR owning the remaining 49%. Over the years, the company has developed into one of the world’s leading producers in its field.

According to KPT management, the investment goes beyond increasing production capacity. It aims to enhance long-term competitiveness through technological upgrades, process optimisation and workforce development, enabling the company to meet increasingly complex demands in the global energy market.

(Photo: KONČAR)

The expansion builds on an investment cycle launched in 2022 and forms part of a long-term growth strategy. Of the 350 new roles planned, around 250 will be in production, with a further 100 positions for highly skilled specialists.

Representatives from Siemens Energy emphasised that the long-standing partnership with KONČAR enables a more effective response to rising global demand, while also strengthening supply chain resilience in a period of continued pressure on international markets.

(Photo: KONČAR)

KONČAR leadership underlined that the collaboration continues to deliver tangible results, combining international expertise with domestic industrial knowledge. The project is expected to reinforce Croatia’s position on the global energy map, particularly as countries invest heavily in modern, sustainable and secure energy infrastructure.