The new plant, which was opened by President Stjepan Mesic, will employ some 400 workers.
The entire production is intended for export, HESPO CEO Stjepan Hresc said.
The factory, which will operate under the name Hilding Croatia, is part of the Swedish corporation Hilding Anders, a leading European manufacturer of mattresses and beds with annual revenues of EUR600 million and more than 3,000 workers. The corporation is present in 26 markets throughout Europe and Asia, Hilding Anders CEO Anders Palsson said.
Hilding Anders bought HESPO from the Hresc family in November 2005 and became its exclusive owner.
HESPO is Croatia's leading producer of mattresses with 290 workers and annual revenues of 147 million kuna.
"We now have relevant legislation which motivates foreign investors to invest in Croatia and they can see that we have people who can organise themselves and who have ideas. Our Swedish partner has recognised the factory's potential for export, which is very important because we must transform from an import economy to an export economy," President Mesic said while opening the plant.
Mesic was also due to lay a corner stone for an ecological bio-gas plant of a chicken meat plant in Cakovec.
(1 EUR = 7.25 kuna)