Zehnder Group liquidates Joint Venture in China and cuts costs

• Zehnder Group and minority partner BBMG decide to liquidate their Joint Venture in China
• Ventilation operations in China are being consolidated; 80 positions will be reduced
• The primary goals are to sustainably improve profitability and position Zehnder Group for the future in China
• One-time effects resulting from write-offs and restructuring expenses totaling approx. EUR 8.0 million are expected, of which approx. EUR 3.0 million will affect cash flow
• Expected annual cost savings of around EUR 1.5 million

Gränichen (CH), 21 October 2026: The Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a comfortable, energy-efficient, and healthy indoor climate, and its Chinese joint venture partner BBMG Corporation decide the liquidation of their joint venture Zehnder (China) Indoor Climate Co., Ltd. in Beijing (China). As part of the liquidation, the production of ventilation units in Dachang (near Beijing) will also be discontinued. This is one of the measures included in Zehnder Group’s overarching streamlining strategy, which aims to improve efficiency and increase resilience. It will result in a reduction of approximately 80 positions, including around 30 office-based and 50 production-related roles. Going forward, Zehnder Group will consolidate its business operations in China through its existing second joint venture based in Pinghu (near Shanghai). 

The planned closure of the Dachang site and the consolidation of ventilation activities in Pinghu are part of an effort to optimize production and organizational structures in response to changing market conditions in the Chinese real estate sector. The orderly closure of the production facility in Dachang is expected to take place shortly.

A key objective of these measures is to achieve a sustainable improvement in profitability. At the same time, consolidating these activities is intended to reduce existing duplicative structures and position Zehnder’s organization in China for the future.

In connection with the liquidation of the joint venture and the closure of the Dachang facility, Zehnder Group expects restructuring costs of approximately EUR 8.0 million. Of this amount, approximately EUR 3.0 million will affect cash flow. This is offset by expected annual savings of approximately EUR 1.5 million.

The Zehnder Group’s future activities in China will focus on Residential Ventilation, Heat Exchangers, Light Commercial ventilation systems, Climate Solutions for passive houses, and export activities to Southeast and East Asia. The profitable Heat Exchanger business of the Chinese subsidiary Fortuneway, which was acquired in 2021, will continue as before and is not affected by the adjustments mentioned.

BBMG Corporation is a state-controlled company headquartered in Beijing that operates throughout China as a building materials supplier, cement manufacturer, and real estate developer. BBMG is listed on the Shanghai and Hong Kong stock exchanges, among others. The joint venture was founded in 1995. In 2025, Zehnder Group generated total revenue of approximately EUR 26.7 million in the Asia-Pacific region.

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Contact

René Grieder
Member of the Group Executive Committee, CFO
Zehnder Group AG, 5722 Gränichen (Switzerland)
T +41 62 855 15 21, rene.grieder@zehndergroup.com

Alexander Kamb
Head of Investor Relations & Communications
Zehnder Group AG, 5722 Gränichen (CH)
T +41 62 855 15 36, alexander.kamb@zehndergroup.com

This media release is published in German and English. The German version is binding. For further information about the Zehnder Group, please visit www.zehndergroup.com.

Company profile

Zehnder Group provides world-leading solutions for a comfortable, energy-efficient and healthy indoor climate. The products and services of the Group include heating, cooling, indoor ventilation and air cleaning. The Group develops and manufactures its products at its own factories in Europe, China, and North America. In the 2025 financial year, the Zehnder Group had about 3600 employees and achieved sales of EUR 761 million. The company is listed on the SIX Swiss Exchange (symbol: ZEHN, ISIN code: CH0276534614). The unlisted registered shares B are held by Graneco AG, which is controlled by the Zehnder families.

Cautionary note regarding forward-looking statements

This release may contain certain forward-looking statements relating to Zehnder Group’s future business, development, and economic performance. Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to force majeure, competitive pressures, legislative and regulatory developments, global, macroeconomic and political trends, Zehnder Group’s ability to attract and retain the employees that are necessary to generate revenues and to manage its businesses, fluctuations in currency exchange rates and general financial market conditions, changes in accounting standards or policies, delay or inability in obtaining approvals from authorities, technical developments, litigation or adverse publicity and news coverage, each of which could cause actual development and results to differ materially from the statements made in this release. Zehnder Group assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise.