16 million euros for growth after Corona

In the photos are Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs of Baden-Württemberg, and Peter Fenkl, the CEO of ZIEHL-ABEGG SE. (Photo credit: Ziehl-Abegg / Ufuk Arslan)

In the photos, Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs of Baden-Württemberg, and Peter Fenkl, the CEO of ZIEHL-ABEGG SE, can be seen. (Photo credit: Ziehl-Abegg / Ufuk Arslan)

In the photos, Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs of Baden-Württemberg, and Peter Fenkl, the CEO of ZIEHL-ABEGG SE, can be seen. (Photo credit: Ziehl-Abegg / Ufuk Arslan)

In the photos, Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs of Baden-Württemberg, and Peter Fenkl, the CEO of ZIEHL-ABEGG SE, can be seen. (Photo credit: Ziehl-Abegg / Ufuk Arslan)

In the photos, Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs of Baden-Württemberg, and Peter Fenkl, the CEO of ZIEHL-ABEGG SE, can be seen. (Photo credit: Ziehl-Abegg / Ufuk Arslan)

In the photos, Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs of Baden-Württemberg, and Peter Fenkl, the CEO of ZIEHL-ABEGG SE, can be seen. (Photo credit: Ziehl-Abegg / Ufuk Arslan)

In the photos, Dr. Nicole Hoffmeister-Kraut, the Minister of Economic Affairs of Baden-Württemberg, and Peter Fenkl, the CEO of ZIEHL-ABEGG SE, can be seen. (Photo credit: Ziehl-Abegg / Ufuk Arslan)

"Global markets will continue to require high-quality electric motors and fans," says CEO Peter Fenkl. Therefore, the Künzelsau-based company is now investing 16 million euros in the expansion of its production buildings at the Kupferzell site. Minister of Economic Affairs Dr. Nicole Hoffmeister-Kraut praises the investment at the Baden-Württemberg location during the official groundbreaking ceremony.

"The new construction project is a clear commitment to the production and innovation hub of Baden-Württemberg. Our country needs companies like Ziehl-Abegg SE, which play a leading role in our economy, especially in challenging times," says Minister of Economic Affairs Dr. Nicole Hoffmeister-Kraut.

The Hohenlohe industrial company is also affected globally by the Corona crisis: sales are slightly below the previous year. "An industry-wide above-average sales increase of 8.6 percent in 2019, however, provides a solid foundation," explains company CEO Fenkl. In the current year, the Hohenlohe company benefits from the wide range of applications in which Ziehl-Abegg products are found. Especially the drive technology division with electric motors for elevators is experiencing one record order intake after another this year.

The new building will create an additional approximately 8,400 square meters of production space for the construction of the most modern generation of energy-efficient electric motors. "The durable and efficient electric motor has been our core competence for over 100 years," emphasizes Fenkl. At the same time, Ziehl-Abegg is a technology leader in the bionic design of fans. Since many aerodynamically ideal geometries in steel or aluminum are not feasible, the plastics division is being expanded. "We urgently need more space for additional plastic injection molding machines," says Fenkl. Overall, Ziehl-Abegg is expanding or optimizing existing facilities worldwide: both in Schöntal-Bieringen, where aluminum casting is located, as well as at the locations in America and Asia. "Corona has shown us that we and our customers need to carefully consider long supply routes," says the CEO.

"Ziehl-Abegg SE stands for what makes our economy in Baden-Württemberg particularly distinctive: regionally rooted but globally active. With this investment, the company is further building resilience in its supply chains and increasing the high value-added depth here at the site," says Minister Hoffmeister-Kraut.

The Hohenlohe-based manufacturer of electric motors and fans has traditionally been characterized by a high degree of manufacturing depth. "We will continue this strength and simultaneously push forward the digital business." Ziehl-Abegg's motors and fans have been Industry 4.0 capable for years, meaning they can be integrated into networks via Ethernet or Bluetooth and controlled. This trend of networking is being driven forward by Ziehl-Abegg with its own cloud solution. "We have partnered with a very experienced and innovative partner for this," explains Fenkl about the partnership with Telekom. "Customer reactions show that we are hitting the nerve of the times with this."

"During the global economic crisis of 2008, we saw a 17 percent decline in sales and then increased by more than 20 percent the following year — that was only possible because we have very good products and motivated, qualified employees," says company CEO Fenkl. Against this background, Ziehl-Abegg is now deliberately investing countercyclically. "When Corona and the resulting economic crisis are over, we can get back to full speed!" The new building offers the opportunity to increase the current number of employees at Ziehl-Abegg in the Hohenlohe industrial park from just over 800 to more than 1,000.

Key Data / Ziehl-Abegg in the Hohenlohe Industrial Park:

Construction cost: 16 million euros (building with 10 loading ramps)
112 additional parking spaces for employees
Additional usable area: 8,400 square meters, of which 1,000 for offices
Total production area in the industrial park so far: 44,240 square meters
Total employees in the industrial park: approx. 850 (2,400 in Hohenlohe overall, 4,300 worldwide)