The Austrian company Palfinger, which began constructing its factory in the industrial zone near Niška Banja in September 2023, has entered the gradual start-up phase of production in 2024 and continues to expand operations according to plan. The company currently employs around 175 workers and plans to hold its official opening ceremony in spring 2026.
While some factories in southern Serbia are downsizing or closing, Palfinger’s arrival represents one of the most anticipated new industrial investments in the region. The company specializes in the manufacture of cranes.
According to Gottfried Rumpl, Palfinger’s Vice President of Factory Operations, production began last year but is still in a ramp-up phase, with output and workforce steadily increasing. “Operations are expanding as planned. Around 175 employees are currently working at the Niš site, including welders, machine operators, forklift drivers, engineers, and administrative staff. As production grows, employment will also rise — the workforce could exceed 350 employees by the end of 2027,” Rumpl explained.
Under the subsidy agreement with the Serbian government, Palfinger committed to invest €35.5 million in the Niš plant, while receiving €4.6 million in state incentives. According to the Ministry of Economy, the company has so far received three tranches of payments, the latest in October 2025, totaling €2,240,061.
Palfinger’s investment has been repeatedly highlighted by President Aleksandar Vučić and Niš Mayor Dragana Sotirovski, and the Serbian government has declared the project an investment of national importance.
