Austrian industrial group Herz is investing €6.4 million in a new highly automated factory in Trbovlje, Slovenia, expanding its local manufacturing capacity as it seeks to increase revenue and compete with larger international suppliers.
The facility is planned for completion in early 2028 and will use artificial intelligence and advanced automation to support production. Herz aims to increase its Slovenian business revenue from approximately €60 million to €100 million, making the investment a significant development for the country’s industrial sector.
Automation Takes Centre Stage
The planned factory will cover approximately 5,000 square metres in Trbovlje’s Lakonca industrial zone. Production will focus on processing and assembling products made from plastics, stainless steel and brass, including heating and plumbing distribution components, safety valves and pressure regulators.
The company expects automation to improve productivity, increase value added and reduce manufacturing costs. Artificial intelligence will support production operations, while specialised machinery will carry out much of the manufacturing work.
The investment reflects a wider shift among European manufacturers towards automated production as they seek to improve efficiency and compete with suppliers operating at lower costs.
Twenty New Jobs Planned
Despite the high level of automation, the factory is expected to create at least 20 new jobs, with approximately half intended for engineers. Their responsibilities will include programming machinery, supervising production and maintaining the automated systems.
The staffing plan is more limited than the original proposal, which envisaged more than 100 additional jobs. The revised approach prioritises automation and productivity over a larger workforce.
For Trbovlje and the wider Zasavje region, the investment could bring new demand for technical skills and support the development of a more advanced industrial base.
Revenue Target Reaches €100 Million
Herz’s Slovenian operations generated approximately €60 million in revenue in the latest reported financial year. The company has set a target of reaching €100 million in Slovenian revenue as production expands and demand for its products grows.
The business manufactures sanitary fittings, valves and components used in water, heating, cooling and ventilation systems. Its products serve markets where reliability, energy efficiency and building-system performance are increasingly important.
The new facility is intended to complement existing production in Šmartno pri Litiji, expanding the company’s manufacturing capabilities rather than simply duplicating its current operations.
Slovenia Competes for Industrial Investment
Herz’s decision to expand in Slovenia highlights the role of operating costs, engineering skills and industrial infrastructure in attracting manufacturing investment. The company has identified these factors as important to its choice of Slovenia over higher-cost Western European locations.
The project also forms part of the wider development of the Lakonca industrial zone, an area being prepared for new businesses and production facilities.
However, the investment’s longer-term impact will depend on successful implementation, demand for the additional output and the company’s ability to compete internationally. The planned completion date of early 2028 leaves time for construction and installation risks to emerge.
For Slovenia, the project offers a concrete example of how automation can support industrial expansion while creating specialised technical roles. Its success will ultimately be measured by the factory’s productivity, export performance and contribution to sustainable revenue growth.
