Urban Transformation of a Former Pencil Factory Complex—A Case Study of ‘TOZ Penkala’ in Zagreb

The subject of this research is the former Zagreb pencil factory (‘TOZ’—Tvornica olovaka Zagreb), which manufactured pencils and pastels since 1937. During the 1970s and 1980s, it was one of the most important factories that produced school and office supplies. This paper investigates frequent changes grouped into several time and development phases, which are determined according to the most important structural and purposeful changes. This paper presents the data obtained through archival and field research to review the past in detail, assess the current state, and its architectural, urban, and identity features, and look critically to the future. Since 2015, the factory has been closed. The factory is awaiting the realization of the ‘TOZ’ urban development plan adopted in 2009. The research data collection methods include observations, reviews of existing records, documentation, and SWOT analysis. This paper’s objectives are to explore existing site opportunities, address the potential and constraints, and evaluate the potential of the proposed urban development plan. This paper concludes with a look at the future of factory buildings. It faces technical, regulatory, and financial risks that might result in the site remaining neglected and unused for many years.