The company, based in Šmartno pri Litiji some 40 km east of Ljubljana, will invest four million euro into the factory, which is expected to create 70-100 jobs.

More than half of the 5,000 square metre facility will be designed for production and the rest for storage.

Production of ball valves and faucets at the new location is expected to be launched in September.

As CEO Damir Rutar recently told Slovenian media, the expansion of production facilities is necessary because of a rise in orders.

The new facility will enable Herz, which employs almost 270 workers, to double production capacity.

Yesterday's ceremony featured Prime Minister Miro Cerar and Minister of Economic Development and Technology Zdravko Počivalšek, who were happy that the multinational had chosen Slovenia to expand production.

Since the company was waiting for the project to get under way for eight years, the story could have ended in a different manner, Cerar noted as he addressed the event.

"The ministry therefore helped in efforts to purchase the land and acquire permits," he was quoted by his office as saying.

Cerar believes that Slovenia is attracting investors due to its exceptional location, integration into the international business environment and a well-trained workforce.

Herz, which was created with the merger of Unitas and Kovina in 2006, posted EUR 24.6m in revenue and EUR 1.2m in net profit in the business year ended last March.

The plan for the current business year is EUR 30m in revenue and a profit of EUR 1.5m.