The Industrial Heritage of Volos

From Commercial Port to Industrial Center

The incorporation of Thessaly into the Greek state in 1881 marked the beginning of the industrial development of Volos. The city’s natural port, strategically located in the Pagasetic Gulf, connected the fertile Thessalian plain with the markets of the Mediterranean, while the arrival of the railway in the 1880s facilitated the transport of products and raw materials. At the same time, capital from Greeks of the diaspora and the artisanal tradition of nearby Pelion contributed to the establishment of the first large factories. Within a few decades, Volos evolved from a small town into a bustling center of industry and commerce.

The Period of Prosperity and the Dominant Industries

The industrial heyday of Volos extended from the late 19th to the mid-20th century. By around 1910, its port had become the second largest in the country after Piraeus, with goods shipped all over the world. During this period, dozens of factories operated in the city, making use of local raw materials and an abundant workforce. Textile manufacturing was among the leading sectors: large mills such as “Leviathan” employed thousands of workers. At the same time, the flour mills were thriving, processing the grain produced in the Thessalian plain. Food industries and tanneries also had a strong presence, while a pioneering gasworks brought electric lighting to the city. After 1922, the population of Volos increased with about 13,000 refugees from Asia Minor, who provided labor and revitalized local entrepreneurship. During the interwar period, industrial growth continued, and the cement industry emerged with the establishment of the “Olympus” factory (later AGET Heracles) in the 1920s. Meanwhile, metallurgy had already been established on solid foundations since 1883 with the first ironworks of Meletis Stamatopoulos and, in the following years, with machine workshops that supplied agricultural equipment. On these foundations, larger plants were later developed, such as the Halyvourgia Thessalias (Thessaly Steelworks). Also of great importance to the city was the Matsaggos tobacco factory, whose female workers were known among locals as “Matsaggoules” or “Matsaggopoules.” 

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From Prosperity to Deindustrialization

Despite its impressive growth, the industry of Volos was affected by historical upheavals. The global economic crisis of 1929 hit many local businesses, but the final blow came with World War II: the port and the railway network were bombed, factories were looted, and the workforce was decimated. After liberation, many industrial units failed to reopen, while a powerful earthquake in 1955 caused further destruction, hindering recovery. In the early 1960s, the establishment of an organized industrial zone in Volos attracted new investments and brought temporary revival. However, this boom proved short-lived, as the lack of technological advancement and changing market conditions soon led to a new crisis and gradual deindustrialization by the 1980s.

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Industrial Heritage in the Modern City

Although the chimneys no longer smoke, the industrial heritage of Volos remains alive within the urban fabric. Many historic factories have been preserved and given new uses as spaces for culture, education, or recreation. For example, the former Papastratos tobacco warehouses now house the Rectorate of the University of Thessaly, the old Tsalamata Brick and Tile Factory operated (before suffering severe damage from storm Daniel) as an industrial museum, and the former power plant has been renovated into a music and theater venue. Some historic industries remain active: the cement factory (“Olympus” of AGET Heracles) continues to operate, as do the local soft drink company EPSA, the Hellenic Steelworks, and the EUREKA detergent factory.

Today, traces of the city’s industrial history are still visible. Neighborhoods around the port and in Nea Ionia preserve many old factory buildings, while even street names recall the industrialists of the past. The old chimneys and warehouses stand beside modern buildings, evoking the time when Volos was one of the driving forces of Greek industry. The city honors its past by integrating it into its contemporary identity.