May the 12th, 2026 – Croatia’s internationally respected industrial giant KONČAR has announced an enormous expansion of its transformer production operations, with planned investments totalling 800 million euros.
As Poslovni writes, the aforementioned is by far the largest industrial investment cycles in modern Croatian manufacturing, with total investments alongside strategic partners expected to reach 800 euros million over the coming years.
At the very heart of this expansion is a 260 million euro project to increase the size of the production facilities of KONČAR – Power Transformers in the Jankomir district. This represents a massive joint venture operated with Siemens Energy. The initiative aims to significantly increase production capacity amid rapidly growing global demand for power transmission infrastructure driven by Europe’s ongoing energy transition.
PM Andrej Plenković described the entire 800 million euro investment cycle as strategically important for Croatia’s economy and industrial future. “This industrial project is of enormous importance for Croatia because it is directly connected to energy infrastructure, one of today’s key global sectors.”
The factory expansion is expected to create around 350 new jobs, including approximately 250 production positions and another 100 highly qualified specialist roles. According to company officials, the project represents more than a simple production increase. It is primarily intended to strengthen Croatia’s overall role in the European energy supply chain at a time when countries across the continent are modernising electricity grids, expanding renewable energy capacity, and investing heavily in energy security.
The investment comes as global demand for large power transformers reaches record levels. Utilities and infrastructure operators across all of Europe have faced extended waiting periods for transformer deliveries due to supply chain bottlenecks and growing electrification needs.
KONČAR and Siemens Energy have otherwise cooperated since 1995 through their joint transformer manufacturing operations. Over the years that followed, this huge Zagreb-based facility has become one of the globe’s recognised producers of large power transformers, supplying equipment for international energy projects.
The latest expansion follows several other recent industrial investments by the group, including the opening of a new transformer tank production facility in Sesvetski Kraljevec earlier this year. That plant was also developed in cooperation with Siemens Energy and is intended to support increasing global transformer demand.
Croatia has identified the KONČAR expansion as part of its broader strategy to modernis all of domestic industry through advanced manufacturing, automation, energy technology, and export-oriented production.
Economic analysts say the investment also reflects wider positive trends in Croatia’s industrial sector. After several slower years causing concern, industrial production rebounded strongly in 2025. This was especially true when it came to capital goods manufacturing tied to energy equipment, transportation infrastructure, and heavy industry.
Industry experts believe demand for transformer production will remain strong for very many years as Europe accelerates renewable energy integration and upgrades ageing transmission networks. The expanded factory is expected to substantially increase KONČAR’s production capacity by the end of the decade, further positioning Croatia as an increasingly important manufacturing hub within Europe’s energy transition.
