German transformer producer SGB-SMIT Group has reached an agreement to acquire a majority stake in Serbian electrical equipment manufacturer Comel Transformatori, strengthening its European production network as demand for grid infrastructure equipment continues to rise.
- Serbian Transformer Producer Expands Through International Ownership
- SGB-SMIT Adds Serbian Facility to European Manufacturing Network
- European Grid Investment Drives Transformer Demand
- Serbia’s Energy Projects Create Additional Equipment Demand
- Acquisition Strengthens Serbian Industrial Position
- Integration to Focus on Capacity and Technical Expertise
The transaction is expected to be completed in the second half of 2026, pending standard regulatory and contractual approvals. The value of the transaction and the size of the acquired equity stake have not been disclosed. Comel’s current owners will remain involved as minority shareholders. The acquisition gives SGB-SMIT access to a Serbian industrial platform focused on power transformers and related services, while Comel will gain access to international procurement channels, engineering resources, a broader customer base and additional financial capacity for future expansion.
Serbian Transformer Producer Expands Through International Ownership
Based in Ripanj near Belgrade, Comel Transformatori manufactures, repairs and overhauls power transformers and associated electrical equipment. The company provides services for transformers with voltage levels of up to 420 kV, supporting transmission operators, electricity producers, industrial customers and renewable-energy developers.
Comel recorded RSD 2.54 billion (€21.7 million) in revenue in 2025, with net profit reaching RSD 218.3 million (€1.9 million). The company generated approximately RSD 309.5 million in EBITDA, representing an EBITDA margin slightly above 12%. Its workforce consisted of 171 employees.
The company’s recent financial performance reflects growing demand for transformer manufacturing and maintenance services as utilities and energy investors increase spending on electricity networks, renewable generation connections and infrastructure upgrades. Comel’s transformer business developed through the acquisition of the former Minel Transformatori operations. In 2020, Comel purchased the assets of Minel Transformatori through a public sale for RSD 192.9 million, approximately €1.6 million at the time. The acquisition preserved production facilities and part of Serbia’s transformer-manufacturing expertise after years of decline in the country’s traditional electrical equipment sector.
SGB-SMIT Adds Serbian Facility to European Manufacturing Network
Founded in 1990, Comel expanded beyond transformer production into low-, medium- and high-voltage equipment, engineering, installation and maintenance services. Across its operations, the group employs more than 240 people. The transformer division became the company’s most strategically important industrial activity as investment increased in electricity transmission, distribution systems and renewable-energy infrastructure.
SGB-SMIT Group manufactures large and medium power transformers, oil-filled distribution transformers, dry-type transformers, compact substations and specialised electrical equipment. Its production network includes facilities in Germany, the Netherlands, Romania, France, the Czech Republic, the United States, India, China and Malaysia. The acquisition of Comel follows SGB-SMIT’s broader expansion strategy, which has included the purchase of Romanian transformer producer Retrasib and expansion in the United States through Southwest Electric. In July 2026, SGB-SMIT and Electro-Alfa International opened the SGB-ALFA transformer factory in Botoșani, Romania, following an investment of approximately €20 million.
European Grid Investment Drives Transformer Demand
Transformer manufacturing has become increasingly important as Europe upgrades electricity networks to support renewable energy, industrial electrification, battery storage facilities, data centres and cross-border electricity flows. At the same time, many existing transformers installed decades ago require replacement, refurbishment or life-extension services.
Unlike standard industrial products, large power transformers require specialised engineering, electrical steel, copper components, insulation systems, testing infrastructure and experienced technical personnel. Delivery times for certain high-voltage units have increased, creating supply constraints for utilities and developers.
Comel’s repair and overhaul capabilities provide a strategic advantage in this market because extending the operational life of existing transformers can be faster and less capital-intensive than purchasing new equipment. A regional service platform in Serbia could support customers across Serbia, Montenegro, Bosnia and Herzegovina, North Macedonia, Croatia, Bulgaria, Romania and Hungary.
Serbia’s Energy Projects Create Additional Equipment Demand
The Serbian market is expected to require further investment in electricity infrastructure. Elektromreža Srbije, Elektrodistribucija Srbije and Elektroprivreda Srbije face requirements related to network reinforcement, substation upgrades and connections for new generation projects. The expansion of wind, solar and battery storage capacity is increasing demand for step-up transformers, substations and replacement equipment.
Projects including the Crni Vrh wind farm, renewable-energy expansion plans by EPS, new solar developments and privately financed wind projects require additional grid infrastructure. Transformer availability has become a key factor in project timelines, as delays in equipment delivery can postpone energisation, testing and commercial operation even after generation facilities are completed.
Acquisition Strengthens Serbian Industrial Position
The ownership change represents a shift toward greater integration of Serbian manufacturing into European industrial supply chains. Foreign investment in Serbia has traditionally focused on sectors including automotive components, assembly operations, mining and consumer manufacturing. Transformer production represents a more specialised segment combining electrical engineering, advanced materials, precision manufacturing, testing and long-term technical services.
With SGB-SMIT as a strategic owner, the Ripanj facility could become part of a wider European production network serving grid-modernisation projects. The company’s reported 2025 EBITDA of approximately €2.6 million provides SGB-SMIT with an established operating base before potential integration effects from procurement, exports and technology cooperation.
Future investment could focus on production capacity, testing equipment, digital engineering systems, quality-control processes and workforce development. The level of future capital expenditure has not been announced, although SGB-SMIT’s recent €20 million investment in Romania indicates the scale of regional expansion undertaken by the group.
Integration to Focus on Capacity and Technical Expertise
The acquisition may strengthen Comel’s position in international tenders where suppliers are evaluated on manufacturing quality, warranties, service capabilities, spare-parts availability and financial reliability. SGB-SMIT’s international presence and operating history could improve Comel’s competitiveness among utilities and private energy developers. Transformer manufacturing depends heavily on specialised engineers, winding technicians and testing personnel. Maintaining Comel’s workforce and preserving local technical expertise will remain important during the integration process. The transaction marks a new stage for the former Minel transformer operations, which were preserved through Comel’s RSD 192.9 million acquisition in 2020 and have since developed into a profitable industrial platform attracting a major European strategic investor.
