Ziehl-Abegg has started construction of a new manufacturing and research facility in Yexie Town, Shanghai, as part of a major expansion of its operations in China. The family-owned ventilation and drive technology company plans to invest around RMB 190 million, equivalent to approximately €25 million or ₹275 crore, over the next five years in the new site, production equipment and advanced manufacturing technologies.
The facility is scheduled to become operational in October 2027 and will significantly increase Ziehl-Abegg’s manufacturing capacity in China. Manufacturing space will rise from the existing 40,000 square metres at its Xinbang Town facility to 63,000 square metres at the new location.
The company currently employs around 700 people in China. With the expansion of manufacturing and research activities, its workforce in the country is expected to exceed 1,000 employees. Ziehl-Abegg also operates 11 sales offices covering major economic regions across China.
Chairman and CEO Joachim Ley attended the groundbreaking ceremony along with representatives of local authorities, business partners and employees. He said the investment reflects the company’s long-term commitment to the Chinese market and its customers.
The new facility will not only increase production capacity but also strengthen local research and development capabilities. Ziehl-Abegg plans to develop products that are more closely aligned with the specific requirements of Chinese customers and local applications.
Mr Ley said local engineering teams would play a larger role in developing solutions that combine technical performance, energy efficiency and commercial viability. He added that understanding customer requirements directly is important for developing products that deliver practical value.
The investment comes amid growing demand for energy-efficient ventilation and drive technologies. Ziehl-Abegg products are used across data centres, telecommunications infrastructure, refrigeration, industrial manufacturing, food processing and other applications requiring efficient air movement and cooling.
The rapid expansion of data centres, including facilities supporting artificial intelligence workloads, is creating additional demand for efficient cooling systems. Digitalisation and increasing energy-efficiency requirements are also supporting demand for advanced ventilation and drive solutions.
The Shanghai facility is expected to become an important manufacturing and innovation centre for Ziehl-Abegg in China and the wider Asia-Pacific region. The company said the expansion represents an investment not only in buildings and machinery, but also in employees, engineering capabilities and long-term customer relationships.
Founded in Berlin in 1910, Ziehl-Abegg is headquartered in Künzelsau, Germany. The company operates 17 production plants, 30 companies and 114 sales locations worldwide. It employs around 5,800 people globally and sells approximately 30,000 products in more than 100 countries. Its business covers ventilation, control and drive technology, including fan systems, electric motors and related solutions for applications such as elevators and medical equipment.
