Croatia’s Končar to invest EUR 500 million in manufacturing over three years

Croatian energy and transportation equipment manufacturer Končar plans to invest more than EUR 500 million to expand its production capacities and business operations over the next three years. The company recently opened a power transformer tank factory in Croatia, in cooperation with Siemens Energy, and it is also planning to build a plant in the United States as well as to develop drones and anti-drone protection systems for energy infrastructure.

Končar and Germany-based Siemens Energy have opened a transformer tank factory in Sesvetski Kraljevec, Croatia, with 400 workers. The facility is worth EUR 20 million. Its planned annual output is around 160 custom-made transformer tanks, according to Croatian media.

The two companies established a joint venture for the project under an agreement signed in July 2024, in response to growing global demand for power transformers, whose key components are transformer tanks.

The factory is expected to produce around 160 large transformer tanks per year

Končar has a 60% stake in the firm, called Končar – Transformer Tanks (KTK), while the remaining 40% is held by Siemens Energy.

According to Tim Holt, a member of Siemens Energy’s Executive Board, high-quality transformers are crucial for the energy transition, and the opening of the new factory marks an important step towards addressing the global shortage of transformers.

Anti-drone protection for energy infrastructure

Gordan Kolak, President of the Management Board of Končar, stated that the company plans to invest over EUR 500 million in the next three years to expand its production capacities.

In addition to building power transformers, battery-powered trains, and trams, Končar is expanding into the defense sector, focusing on the development of drones and anti-drone protection for critical infrastructure, he said.

According to Kolak, anti-drone protection is essential for safeguarding critical infrastructure, especially power substations, hydropower plants, and large electricity transmission and distribution facilities.

He added that through cooperation with the Croatian Ministry of Defence, Končar seeks to develop the know-how, capabilities, and track record it needs to enter the infrastructure protection market.

Expansion in the US with a Texas plant

Končar is pressing ahead with plans to expand its business in the United States, despite current tensions with the European Union. Kolak announced that the company intends to build a factory in Texas to serve the US market.

“We are monitoring the situation and analyzing how it could affect our business, but the decision to strengthen our presence in the US market was made last year. We plan to build a factory in Texas to serve the US market, laying the groundwork for further growth and development in the United States,” he said.

According to Končar’s website, it employs nearly 6,000 people, and its products and solutions, such as transformers, trams, hydropower plants, and substations, can be found in more than 130 countries worldwide.

Established in 1921, Končar originally had Siemens as a founding owner. The partnership was renewed in 1994 through a joint company called Končar – Power Transformers. Siemens Energy now holds a 51% stake and Končar has 49% in what the Croatian company claims is one of the world’s leading manufacturers of large power transformers.