The ceremonial laying of the foundation stone for the expansion of production capacities at the large power transformer factory marks the beginning of a new investment phase for KONČAR – Power Transformers Ltd. (KPT). This is a strategic project of the joint venture between Siemens Energy and KONČAR, announced last summer and valued at approximately EUR 260 million. The implementation of the project will further strengthen the position of one of the world’s leading manufacturers of large power transformers, while simultaneously increasing its manufacturing capacities.

The investment comes at a time of exceptionally strong global growth in demand for equipment in the power transmission and distribution sector and represents an important step forward for domestic industry during a period of intensive energy transition. Alongside representatives of KONČAR – Power Transformers, Siemens Energy and the KONČAR Group, the ceremony was attended by the Prime Minister of the Republic of Croatia, Andrej Plenković; the Deputy Prime Minister and Minister of Finance, Tomislav Ćorić; the Minister of Economy, Ante Šušnjar; and H.E. Pascal Hector, Ambassador of the Federal Republic of Germany to the Republic of Croatia.

Underlining the importance of the project for the Croatian economy, Prime Minister Andrej Plenković stated: “This industrial project is of exceptional importance for Croatia. It represents a strong investment cycle in which KONČAR, in cooperation with its partners, is investing a total of EUR 800 million in a sector directly linked to one of the key global topics – energy, the energy sector and the development of energy networks. Today’s investment, in partnership with Siemens Energy, amounting to EUR 260 million for the expansion of the power transformer factory, together with the creation of 350 new jobs, represents an important and tangible step forward. Through this project, KONČAR is further strengthening its industrial capacity, export potential and position among the leading manufacturers in the energy sector. This is a strategic step that confirms Croatia’s clear development direction – investment in knowledge, production and partnerships with global leaders, with a strong focus on digitalisation, automation, and research and development. Today’s message is therefore clear – without energy there is no economy, and without a strong industry there is no real economic progress.”

KONČAR – Power Transformers Ltd. (KPT) was the first joint venture of Siemens Energy and KONČAR, commencing operations as early as 1995, and today ranks among the finest large power transformer factories in the world. Siemens Energy holds a 51% ownership stake in KPT, while KONČAR holds 49%, with both partners focused on continuous improvement, jointly addressing market challenges, and contributing to a more energy-independent and sustainable future.

Speaking about the company’s development plans, Boris Potočki, President of the Management Board of KONČAR – Power Transformers, emphasised the long-term dimension of the investment: “This investment represents a step that goes beyond capacity expansion; it is about strengthening our long-term competitiveness in the global market. In the coming years, we will further upgrade technology, optimise processes and develop the competencies of our employees in order to respond to the increasingly complex requirements of the energy transition. Our goal is clear – to remain a reliable partner in the development of modern, sustainable and secure power infrastructure.”

Building on the investment cycle launched in 2022, the current expansion represents the next phase of a long-term growth strategy. The project will result in the creation of approximately 350 new jobs – 250 in production and 100 for highly qualified professionals.

“The long-standing partnership between KONČAR and Siemens Energy enables an effective response to the growing demand for power transformers at a time when global supply chains remain under pressure. Continuous expansion of production capacities strengthens supply chain resilience and provides reliable support to customers in the delivery of key power infrastructure projects,” said Tim Holt, Member of the Executive Board of Siemens Energy.

“The partnership with Siemens Energy has been delivering tangible results for decades, and this investment is its logical continuation. Together, we are developing projects with global reach that confirm how the synergy of international experience and domestic industrial expertise can create long-term value by positioning Croatia on the global map of the energy transition,” emphasised mr. sc. Gordan Kolak, President of the Management Board of KONČAR.