Palfinger, the Austrian manufacturer and supplier of cranes and lifting solutions, is planning to expand its operations in Slovenia by building a €70 million production facility in Ormož, northeast by 2028. The government is to chip in up to 30%.

Palfinger, which employs more than 12,000 people in 31 locations worldwide, has had a plant in Maribor, some 50 km northeast of Ormož, since 1993, employing some 900 staff.

The location has proved too small for the company's expansion plans, so they decided to build a modern strategic production facility at the Glinokop industrial area on the outskirts of Ormož.

A memorandum of understanding that will make the investment possible was signed on 13 November by Economy Minister Matjaž Han, Ormož Mayor Danijel Vrbnjak and Palfinger chief operating officer Alexander Susanek.

The memorandum foresees the creation of a production facility for cranes and hoists, a training centre, a logistics centre to optimise supply chains and a paint shop.

Susanek said production of cranes and hoists is planned to be launched in 2028, and the company is planning to invest €70 million there in the coming four to five years.

Initially, 25 workers will be hired, "but it will certainly not stop there, because we'll need more as the years go by", Susanek said at the signing event.

Strategic location

Palfinger opted for Ormož due to the size of the plot, the town's logistic position and the vicinity of a future expressway.

"It's also great that we have a link here to our component plants in SE Europe, in Bulgaria and Serbia," Susanek said. Ormož will serve as a central hub connecting to Palfinger's locations in Austria.

Govt to chip in €15-20 million

Minister Han hailed the greenfield investment, saying the the government will support it by providing up to 30% of the funds, that is between €15 million and €20 million.

The government will also help in other ways. "We'll need the cohesion and infrastructure ministries to site this factory more quickly," Han said.

He finds it important that Palfinger is not abandoning production in Maribor nor cutting staff numbers there.

Local authorities helping out

The municipality has provided the plot for the investment with utility infrastructure, and it will also help with the paperwork and zoning acts.

The town is also committed to invest the entire utility contribution paid by Palfinger back into the Ormož industrial zone.

It has moreover filed an application with the Education Ministry to introduce a programme of mechanical engineering at the secondary school in Ormož. The mayor expects it to be launched in September 2026.

After the initial stage Palfinger is planning four more by 2035. These would focus on expanding the crane arm manufacturing capacities, the transfer of the telescope arm and sub-assembly system capacities and further capacity expansions to ensure strategic growth, Forbes Slovenija has reported.

According to the newspaper Večer, the Maribor plant is the second largest among Palfinger's production locations. Last year it generated €240 million in net sales revenue and €9.5 million in net profit.