Ziehl-Abegg, a manufacturer of electric motors, air conditioning equipment, and fans that is headquartered in Germany, has just unveiled its strategic plans to establish a new production facility in Vietnam, a move aimed at expanding its global footprint.

The inauguration ceremony for the newly formed subsidiary, Ziehl-Abegg Vietnam, took place on July 11 in Ho Chi Minh City. Currently, construction of an advanced facility close to the city is underway.

To address the persistent surge in customer demand, construction work has already commenced, with production at the facility slated to commence in the first half of 2024. Full-scale production is anticipated to be achieved by the end of the same year.

Encompassing a sprawling expanse of 14,000 square meters, the production site will allocate 12,900sq.m for manufacturing purposes and 1,100sq.m for administrative functions.

This expansion initiative builds on prior investments to enhance the company’s production capacities in Poland and the United States, along with ongoing investments in Germany.

Joachim Ley, Ziehl-Abegg’s Production director, underscored the paramount importance of expanding production worldwide in order to meet customers’ escalating demands.

Ley emphasised, “The new facility in Vietnam holds particular significance for the Asian and Australian markets, allowing us to continually provide our customers with optimal solutions.”

The establishment of Ziehl-Abegg Vietnam represents another pivotal stride in the company’s overarching global expansion strategy. With the establishment of a production facility in Vietnam, Ziehl-Abegg aims to bolster its market presence in the Asian and Australian regions, effectively enhancing its ability to serve customers in these areas.

Furthermore, Ziehl-Abegg disclosed the appointment of Alexander Reich as the managing director of Ziehl-Abegg Vietnam. Working alongside COO Joachim Ley, Reich will assume a crucial role in spearheading the success of the new facility.

Ziehl-Abegg, headquartered in Künzelsau, Germany, is a globally renowned industry player in the field of ventilation, control, and drive technology. With a storied history dating back to the 1950s, when it pioneered the development of external rotor motors, the company continues to specialise in electric motors that power a diverse array of applications, ranging from elevators to medical equipment – such as computer tomography devices – and deep-sea underwater vehicles.

Boasting an illustrious track record of innovation, Ziehl-Abegg employs 2,800 skilled employees in its production plants in southern Germany, and its global workforce numbers 5,100, spread across 15 production facilities, 30 subsidiary companies, and 117 sales locations around the world.

With a product portfolio exceeding 30,000 items, the company’s offerings are distributed across more than 100 countries. Ziehl-Abegg generates an annual turnover of $981.5 million.

Founded by Emil Ziehl in Berlin in 1910 as an electric motor manufacturer, the company relocated its headquarters to southern Germany in the aftermath of World War II. Ziehl-Abegg SE remains a family-owned enterprise and is not publicly traded.

Vietnam Investment Review