Ziehl-Abegg to invest € 28 mn for construction a building in Germany

By admin June 21, 2016 1:43 pm IST

   Ziehl-Abegg is investing €28 million for construction of a new building at the Hohenlohe Business Park in Baden-Württemberg, Germany where EC production is to be relocated and expanded.
“We are equipping ourselves for the future,” that is the commitment from Peter Fenkl, Chairman of the Board of Ziehl-Abegg. Since worldwide demand for energy-saving fans and motors is on the increase, the Künzelsau-based company is constructing a new building for EC production in the Hohenlohe Business Park (Baden-Württemberg). Over the next two years Ziehl-Abegg will be investing a total of around 28million euros in Hohenlohe. “By doing this we are strengthening the position of Germany and Hohenlohe in particular as a production location”says Fenkl.

Up to now, the energy-saving motors and fans have primarily been manufactured in the WürzburgerStraße facilities in Künzelsau. In order to almost double the production area to nearly 8,000 square metres there is a need for a new building in the Hohenlohe Business Park. The new building, with an initial estimate for construction costs of 11 million euros, will be ‘docked’ on to an existing building. This will not only enable use of the existing loading ramps but also incorporate existing surfaces.
Building work is in fact expected to start in the summer of 2016. The construction of new manufacturing facilities, as well as the relocation of the existing production facilities will then take place mid-2017. This will involve the relocation of 140 jobs from Künzelsau (WürzburgerStraße) to the new building. “Relocating to a new place of work is of course often not easy for those affected” says CEO Fenkl. Therefore, the company did not take this decision lightly. However, the existing site is already operating at full capacity and further growth at this facility is not possible. “It is also clearly evident that this is a growing sector” says Fenkl as the targets demanded by the European Union for energy consumption by electric drives in fans will be further tightened by no later than 2020, according to the so-called ErP Directive (energy-related products).