• €25 million investment in new site in China
• Workforce expected to exceed 1,000

With the groundbreaking ceremony for its new facility in Yexie Town, Shanghai, Ziehl-Abegg has launched one of the largest investments in its history in China.

Over the next five years, the family-owned company will invest around RMB 190 million (approximately €25 million) in manufacturing, research and development. The new facility is scheduled to become operational in October 2027 and will increase the local workforce from around 700 employees today to more than 1,000.

Ziehl-Abegg is further expanding its presence in China. At a ceremonial groundbreaking event in Yexie Town, Songjiang District, Shanghai, the ventilation and drive technology specialist officially commenced construction of its new manufacturing facility. Chairman and CEO Joachim Ley joined representatives of the local authorities, business partners and employees to mark the occasion.

“Today, we are celebrating far more than the start of a construction project,” said Ley. “This investment is a clear commitment to the Chinese market and to our customers here.”

Larger facility to support future growth

The new site will replace the company's existing facility in neighbouring Xinbang Town. Manufacturing space will increase from 40,000 to 63,000 square metres. Over the next five years, Ziehl-Abegg will invest approximately RMB 190 million – around €25 million – in new buildings, production equipment and advanced manufacturing technologies. The new facility is scheduled to open in October 2027.

Ziehl-Abegg currently employs around 700 people in China. As operations expand, the workforce is expected to grow to more than 1,000 employees. The company also operates eleven sales offices covering all major economic regions across the country.

Research and development closer to the customer

For Joachim Ley, the investment represents far more than additional manufacturing capacity. “Anyone who believes innovation happens only in Europe will not succeed in the Chinese market over the long term,” he said. The new site will therefore strengthen Ziehl-Abegg's local research and development capabilities. The objective is to align products even more closely with the specific requirements of Chinese customers.

“The best solutions are developed where customer needs are understood first-hand,” said Ley. “Our ambition is not to develop products with the greatest number of features. Our ambition is to develop products with the right features.”

He added that German engineering is rightly recognised worldwide for its technical excellence. At the same time, every product must meet the expectations of the market it serves. “Technical perfection is one of our greatest strengths. But not every additional feature creates additional value in every market. Sometimes it simply adds complexity and cost. That is why we are deliberately investing in local engineering expertise. Our teams in China understand the needs of customers on the ground and develop solutions that combine performance, energy efficiency and commercial viability.”

Growing demand driven by future industries

The new facility responds to the increasing global demand for energy-efficient ventilation technology. Ziehl-Abegg's fans and drive systems are used in data centres, IT and telecommunications infrastructure, refrigeration, industrial manufacturing, food processing and numerous other demanding applications.

The continued expansion of data centres – particularly those supporting artificial intelligence – together with digitalisation and rising requirements for energy-efficient cooling are driving strong global market growth.

Long-term commitment to China

“The Chinese market is evolving at remarkable speed,” said Joachim Ley. “Our ambition is to grow alongside it and remain a reliable long-term partner for our customers. That is why we are investing not only in additional production capacity, but also in engineering expertise, technology and closer customer collaboration.” He continued: “This investment is a clear commitment to China as a manufacturing location, to Songjiang District and to Yexie Town. We are investing not only in buildings and machinery, but in people, innovation and long-term partnerships.”

With the groundbreaking ceremony completed, construction of the new facility is now under way. Operations are scheduled to commence in October 2027, further strengthening Ziehl-Abegg's position as a manufacturing and innovation hub for China and the wider Asia-Pacific region.