The Austrian company “Palfinger” has commenced trial production at its new factory in the “Istok” work zone in Niš, which began construction in September last year. Regular production is expected to start next month, according to company representative Ivan Tasić.
“The factory is in the final stage of construction. Most of the machines are already installed, with a few more yet to arrive. We currently have close to 80 employees, in line with our plan to have 375 employees by 2027,” said Tasić.
Palfinger specializes in crane manufacturing, and the Niš facility will produce steel subassemblies. “One of our initial projects is the production of stabilizers for trucks and vehicles. This is just the beginning, and we anticipate expanding our product range with new projects soon,” Tasić added.
The choice of Niš for the new factory was influenced by its strategic traffic connections to Croatia, Slovenia, and Bulgaria, where Palfinger already has factories, and its local University and Faculty of Mechanical Engineering.
Niš Mayor Dragana Sotirovski noted the rapid progress from the company’s initial letter of intent to the city administration to the laying of the foundation stone. “In the past four years, Niš has welcomed five new investors. Palfinger was the penultimate, with Ariston being the latest. Over the last decade, direct investments in Niš have exceeded one billion euros,” said Sotirovski.
Thanks to these investments, unemployment in Niš has decreased from over 20,000 to 17,000, while employment has risen to 100,000. The industrial zone where the Palfinger factory is located is nearly full, prompting the city to develop the “North 1” and “North 2” industrial zones to attract further investment.
Last September, the construction of the Austrian factory, which produces cranes, began. By November, part of the funds amounting to 169,830 euros had been paid, although the contract stipulated an initial tranche of 744,162 euros.
Palfinger received a total of 4.6 million euros in state subsidies, along with free land valued at one million euros, covering 6.95 hectares. The company is set to invest at least 35.4 million euros in the Niš factory and employ 375 workers by the end of 2027, as per the contract signed with the Ministry of Economy last year.
During the foundation stone laying ceremony, Serbian President Aleksandar Vučić mentioned that Palfinger could receive “even more significant subsidies” if it establishes a development center within the factory.
