Palfinger, the Austrian manufacturer and supplier of cranes and lifting equipment, is planning to expand its activities in Slovenia by building a 70 million euro production facility in Ormož in the north-east of the country by 2028. The government will contribute up to 30 per cent.
Palfinger, which employs more than 12,000 people at 31 locations worldwide, has had a plant in Maribor, with around 900 employees since 1993. As the site proved to be too small for the company's expansion plans, it was decided to build a modern strategic production facility on the outskirts of Ormož.
A Memorandum of Understanding enabling the investment was signed on 13 November 2024 by Minister of Economy Matjaž Han, the Mayor of Ormož, Danijel Vrbnjak, and Palfinger Chief Operating Officer Alexander Susanek. The memorandum provides for the construction of a production facility for cranes and hoists, a training centre, a logistics centre to optimise supply chains and a paint shop.
According to Susanek, the production of cranes and hoists is scheduled to start in 2028 and the company plans to invest 70 million euros over the next four to five years. Initially, 25 employees are to be hired, "but it will not stop there, because we will need more over the years," said Susanek at the signing of the contract.
Palfinger chose Ormož because of the size of the site, the town's logistical location and its proximity to a future motorway. "It's also great that we have a connection here to our component plants in south-east Europe, in Bulgaria and Serbia," says Susanek. Ormož will serve as a central hub to the Palfinger sites in Austria.
Minister Han welcomed the greenfield investment and stated that the government will provide up to 30 per cent of the funds, i.e. between 15 and 20 million euros. The government will also help in other ways. "We need the Ministry of Cohesion and the Ministry of Infrastructure to speed up the establishment of this factory," Han said. He believes it is important that Palfinger does not give up production in Maribor and does not reduce the number of employees there.
The municipality has provided the land for the investment with the utility infrastructure and will also help with the formalities and the development plan. The municipality has also committed to reinvesting the entire utility contribution paid by Palfinger in the Ormož industrial estate. In addition, it has submitted an application to the Ministry of Education to introduce a degree programme in mechanical engineering at the secondary school in Ormož. The mayor expects this to start in September 2026.
