25 million euros for a new location in China

Chairman Joachim Ley at the groundbreaking ceremony in China for Ziehl-Abegg's new plant. (Photo: ZIEHL-ABEGG)

With the groundbreaking ceremony for the new location in Yexie Town (Shanghai), Ziehl-Abegg begins one of the largest investment projects in its history in China. The family-owned company will invest around 190 million RMB (approximately 25 million euros) over the next five years in production, research, and development. The new plant is scheduled to start operations in October 2027 and will increase the number of employees from around 700 to more than 1,000.

Ziehl-Abegg is steadily expanding its presence in China. With a ceremonial groundbreaking, the fan and motor manufacturer has given the official start signal for the construction of its new plant in Yexie Town in the Songjiang District of Shanghai. Together with representatives of Chinese authorities, business partners, and employees, CEO Joachim Ley performed the first spadeful of earth.

“Today, we celebrate much more than just the start of a construction project,” says Ley. “This investment is a clear commitment to this market and to our local customers.”

Larger plant for further growth

The new site replaces the existing plant in the neighboring Xinbang Town. The production area will grow from the current 40,000 to 63,000 square meters. Over the next five years, Ziehl-Abegg will invest around 190 million RMB – approximately 25 million euros – in buildings, production facilities, and modern manufacturing technologies. The move into the new plant is planned for October 2027.

Already today, Ziehl-Abegg employs around 700 staff in China. With the expansion of the site, this number is expected to increase to more than 1,000 in the medium term. In addition, there are eleven sales offices in all major economic regions of the country.

Research and development closer to the customer

For Joachim Ley, the investment is much more than just expanding production capacity. “Anyone who believes that innovation only occurs in Europe will not be successful in the Chinese market in the long term,” emphasizes the CEO. Therefore, Ziehl-Abegg is specifically strengthening its research and development activities at the new location. The goal is to align products even more consistently with the requirements of Chinese customers.

“The best solutions are created where we understand our customers’ needs firsthand,” says Ley. “Our task is not to develop as many functions as possible. Our task is to develop the right functions.”

German engineers are known worldwide for their technical competence. At the same time, every product must meet the requirements of the respective market. “Technical perfection is a great strength. But not every additional function creates added value in every market. Sometimes, it merely increases complexity and costs. That’s why we deliberately invest in regional development expertise. Our engineers in China understand the needs of our local customers and develop solutions that are powerful, energy-efficient, and economical.”

Growth markets drive demand

With the new plant, Ziehl-Abegg is responding to the globally increasing demand for energy-efficient air technology. The company’s fans and drive systems are used, among other applications, in data centers, IT and telecommunications, refrigeration technology, industrial manufacturing processes, and the food industry.

Particularly, the expansion of data centers (including for artificial intelligence), ongoing digitalization, and increasing requirements for energy-efficient cooling are driving dynamic global market growth.

Long-term commitment to China

The Chinese market is developing at an enormous pace. Our goal is to accompany this growth long-term and remain a reliable partner for our customers. That’s why we are investing here not only in additional capacity but also in development expertise, technology, and proximity to the customer,” says Joachim Ley. “This investment is a clear commitment to the economic location of China, to the Songjiang District, and to Yexie Town. We are not only investing in buildings and machinery. We are investing in people, innovation, and long-term partnerships.”

With the current groundbreaking, the construction phase begins. The new plant is scheduled to start operations as early as October 2027, further strengthening Ziehl-Abegg’s position as an innovation and manufacturing hub for the Chinese and entire Asia-Pacific markets.