German manufacturer of electric drives and fans, Ziehl-Abegg, is investing 100 million euros ($154.4 million) in the construction of a new US production plant, in order to boost its production and sales activities in North America.
“This is the largest single investment at one location in the company's 112-year history and is the result of the strong growth in quiet, robust and energy-saving fans in the markets in Mexico, Canada and the USA,” said Joachim Ley, chief operating officer at Ziehl Abegg.
Growth in North America has enabled the Greensboro (North Carolina) site to increasingly accelerate its rate of expansion since its inception in 2004.
In the first 10 years, the number of employees at Ziehl-Abegg in the USA only grew from 0 to 40, but in the past eight years, it has already increased from 40 to 230. And by 2030, it is anticipated that there will be 800 people working for Ziehl-Abegg in the USA.
The headquarters of Ziehl-Abegg USA is responsible for the whole of North America and has 11 sales offices serving the markets in the USA, Mexico and Canada.
The company’s US managing director, Mirco Hermann, said areas of application for their products include data centres, heating and refrigeration systems, clean rooms and agricultural systems.
The new plant, with an administration building attached, will be constructed in Winston-Salem (North Carolina), which is about 20kms away from the existing site.
The building will cover an area of 46,500 square metres and will be ready for occupancy in 2024. The existing production plant will then be relocated to the new site in 2025. The production plant will have a high level of vertical integration.
“We will not only be expanding capacities, but also increasing the level of vertical integration. Thanks to a fully self-contained system of production, starting with the motors, we will be able to offer our customers a high degree of flexibility and short delivery times,” he said.
Winding machines, welding robots and CNC machines haven been installed for this purpose.
“Due to the location’s central function, the site will include a high-bay warehouse. And in the medium term, we will also be setting up a development hub with a laboratory in Winston-Salem,” Herrmann added.
“This will require an extensive system of air measurement and motor test rigs.”