A new manufacturing base for Ziehl-Abegg Mechanical and Electrical Equipment (Shanghai) Co Ltd broke ground on Aug 18 in Yexie town, Songjiang district, as the German company expands its manufacturing capacity and advances smart manufacturing.

The project is scheduled to be completed and begin operations by October 2027.

Located in Yexie's industrial R&D area, the new base will span 63,000 square meters of production space, marking one of the company's largest investments in China. It plans to invest about 190 million yuan ($26.6 million) in the project over the next five years.

The factory will integrate advanced manufacturing processes with automated and digital production systems as part of the company's efforts to expand its manufacturing and research and development capabilities in China.

The project is also a key outcome of Songjiang's cross-town industrial land transfer mechanism. It is the first industrial land project launched in Yexie since the town lifted two decades of water-source protection restrictions. The land was approved for the project in July 2025 and handed over in March 2026.

Through district-level coordination, rural collective economic organizations from multiple subdistricts and towns jointly acquired the land and will build standardized factory facilities for Ziehl-Abegg to lease. The company obtained its construction permit on the same day it acquired the land, allowing construction to begin immediately.

Founded in 1910, Ziehl-Abegg is a German company with more than a century of engineering experience, specializing in motors, fans, drive technology, and control systems. Its wholly owned Chinese subsidiary, established in 2007, operates 11 sales offices nationwide. Its products are widely used in sectors including data centers, information technology, and telecommunications.

The company currently employs about 700 people in China, and expects its China workforce to exceed 1,000 as its business grows.

A Ziehl-Abegg representative said the new base will strengthen the company's R&D and manufacturing capabilities in China, enabling it to respond more effectively to customer needs and to further expand its business in the country.

Source: Songjiang district government