Ziehl-Abegg has begun work on a $US28.9 million manufacturing and R&D facility in Shanghai, China which will be operational in October 2027.
Over the next five years, the family-owned company will increase the local workforce from around 700 employees today to more than 1,000.
Ziehl-Abegg chair & CEO, Joachim Ley, said 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 to support future growth.
The ventilation and drive technology specialist operates 11 sales offices covering all the major economic regions across China.
For 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.
He said the new site will 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,” Ley said. “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,” Ley said.
“Our teams in China understand the needs of customers on the ground and develop solutions that combine performance, energy efficiency and commercial viability.”
Ley said 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.
“The Chinese market is evolving at remarkable speed,” Ley said. “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.”
Ultimately, Ley said the investment strengthens Ziehl-Abegg's position as a manufacturing and innovation hub for China and the wider Asia-Pacific region.