September the 20th, 2025 – A future large Končar facility is aiming to target the US market, as well as that of the Far East, with an educated prediction of a massive 60 million euros in revenue.
As Poslovni Dnevnik/Domagoj Puljizovic writes, Končar is set to open a new facility in Sesvetski Kraljevac near Zagreb at the end of October for the production and sale of transformation boilers. It will employ 400 people and is a joint venture with the giant German company Siemens Energy, the value of which has been measured in tens of millions of euros.
“Thanks to this new location, which spans over 35 hectares, we’ll partially free up Jankomir for further expansion as part of the first investment with Siemens Energy, which amounts to 260 million euros. We’re moving part of our capacities from Fallerovo šetalište, which is related to the production of transformer boilers, to Sesvetski Kraljevec. With this new Končar facility, we’ll meet not only the needs of Siemens Energy, but also customers like Hitachi, Geely and other companies in the transformer business that need such products. In addition, we’ll start preparing the construction of a new medium-voltage unit factory, which is currently located in Borongaj, as early as next year,” explained Gordan Kolak, President of the Management Board of Končar.
60 million euros in revenue
The new Končar facility in Sesvetski Kraljevec should be able to produce up to 160 boilers per year with a capacity of 400 kV, added Kolak.
“We expect to generate approximately 60 million euros in revenue from the new factory,” said Kolak, emphasising that Končar benefits as much as Siemens Energy does. “We recognised the interest in the company’s vertical integration into the entire transformer production supply chain and proposed to Siemens Energy that we create a joint factory using the experience and knowledge that Končar has and the market needs that Siemens Energy needs to meet through its network of partners. In this way, we can market many more products than we could have done independently. They get Končar’s know-how and security in the supply chain, and we get security in our product placement,” explained Kolak.
tariffs aren’t currently an issue
Kolak also noted that Končar currently exports 71 percent of its revenue, with 29 percent of it generated on the domestic market.
“Some of that is made up of trains and trams, but our primary focus is exports to European Union countries. Mostly to Germany, then to Sweden, Norway, the Netherlands and Austria, but we also want Končar to be increasingly present in the US and Middle East markets,” said Kolak, adding that in that context, they are currently discussing partnerships and the construction of new plants in those locations as well.
He also referred to the tariffs that the administration of US President Donald Trump has introduced in countries around the world, which, he says, haven’t yet affected Končar operations in the US market. “Last year, we generated several million in the US market and exceeded that number in the first quarter of this year. That means that tariffs haven’t yet affected our business, and whether they will affect us in three years, we’ll have to see. However, we do have plans in place to reduce such risks,” Kolak emphasised.
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