Ziehl-Abegg invests €25 million in new China manufacturing site

The Shanghai facility will expand production space and local R&D, with operations scheduled to begin in October 2027.

Ziehl-Abegg invests €25 million in new China manufacturing site

Ziehl-Abegg has started construction of a new manufacturing facility in China, with around RMB 190 million (€25 million [approx. $29 million]) to be invested over the next five years in manufacturing, research and development. The Shanghai facility is scheduled to begin operations in October 2027, with the company’s workforce in China expected to increase from around 700 to more than 1,000 employees.

The new site in Yexie Town, Songjiang District, will replace Ziehl-Abegg’s existing facility in neighbouring Xinbang Town. Manufacturing space will increase from 40,000 to 63,000 square metres (approx. 430,600 to 678,100 sq ft). The investment covers new buildings, production equipment and advanced manufacturing technologies.

The ventilation and drive technology specialist will also strengthen its local research and development capabilities at the new site. The objective is to align products more closely with the specific requirements of customers in China. Ziehl-Abegg also operates eleven sales offices covering major economic regions across the country.

Ziehl-Abegg’s fans and drive systems are used in refrigeration, data centres, IT and telecommunications infrastructure, industrial manufacturing and food processing, among other applications. The company said expansion of data centres, digitalisation and increasing requirements for energy-efficient cooling are driving demand for energy-efficient ventilation technology.

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

China Asia
Get the daily refrigeration briefing

One email a day. Trusted by 3,000+ RACHP professionals.

Most read this month

All news →