The plant was inaugurated by Prime Minister Andrej Plenkovic, who said it modernised production in Elka, which employs 220 workers and makes HRK 450 million in annual revenue.
The company exports over 80% of its product and is among Croatia's top ten exporters this year, he added.
"Exporters are the driver of the development of the Croatian economy, the healthy backbone which generates GDP growth and quality business," Plenkovic said, adding that this was a bright example of the Croatian economy.
Elka CEO Gordan Miler said this was a big day for the company as it saw the inauguration of a machine making conductors, the core of their final product. The company made the investment itself, he added.
He said the investment would double the production capacity, increase the quality of the final product, and boost Elka's competitiveness in all the markets it was present in, notably the EU and the region, but Croatia as well.
Miler said the demand for Elka products had been quickly improving in recent weeks and that employment was at its maximum.
Elka is the biggest cable manufacturer in the region. It has been in business since 1927 and is regularly among Croatia's biggest exporters.
Economy Minister Darko Horvat said Elka was a 100% industrial manufacturer but that there had been no continuity in this year's orders. "If necessary, the government will be able to subsidise the costs of one work day for employers whose orders are late or who have none."
With the new production line, Elka will make six tonnes of cable per employee in one month. Monthly cable production is 1,500 tonnes. The new plant will save 50% in energy.
The company's medium term plans include moving to Brckovljani municipality east of Zagreb where a modern factory is to be built, it was said.