Foreign investors revitalize Niš economy with new factories and over 1,000 jobs

Several foreign companies are investing in new manufacturing facilities and expanding production in the Niš region of Serbia, signaling a positive shift after recent economic setbacks.

Earlier this year, the local economy was hit hard by the closure of the Italian company Benetton, which operated for over 13 years in the former Nitex textile factory space. More recently, the German company Leoni announced it will shut down its factory in Malošište, near Niš, by the end of 2025, affecting around 1,900 employees. However, Leoni’s factories in Niš, Prokuplje, and Kraljevo are expected to continue operations with minimal production reductions until the end of 2026.

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Despite these challenges, three new factories are slated to open near Niš and Niška Banja by the end of this year, in the Industrial Zone “Sever 2.” These include Austrian company Palfinger, Italian company Ariston, and another German company.

Mayor Dragoslav Pavlović confirmed these developments and expects that these new plants will create over a thousand jobs.

• Palfinger, already operating in Niš since 2024, is completing its production facilities between Niš and Niška Banja. The company plans to employ 375 workers initially, with total employment exceeding 550 by the end of next year.
• Ariston, an Italian manufacturer specializing in heating systems, broke ground less than a year ago and is close to finishing its factory, which will export products valued at approximately 240 million euros annually. This facility will be the first in the newly established Industrial Zone “Sever 2” and is expected to open by mid-December this year. The investment in this factory amounts to 75 million euros and covers around 30,000 square meters.
• The third investor, Boge from Germany, is also constructing a plant of about 40,000 square meters in the same zone, expected to be completed before year-end. It will create several hundred new jobs.

These investments highlight renewed economic activity and foreign interest in the Niš region, helping to offset recent factory closures and job losses.