Zehnder Group to Liquidate Chinese Joint Venture, Reduce Costs

On October 21, 2026, Zehnder Group AG announced the liquidation of its Joint Venture in China with partner BBMG Corporation. This decision aims to streamline operations, improve profitability, and adapt to changing market conditions in China. The closure will lead to the reduction of 80 positions and will consolidate operations in their Pinghu joint venture.

The move is expected to incur a one-time restructuring cost of approximately EUR 8.0 million but should yield annual savings of around EUR 1.5 million. Zehnder's focus in China will shift to residential ventilation and heat exchangers, with ongoing operations unaffected by these changes.

The joint venture, established in Beijing, was intended to bolster Zehnder's market presence in the region. The strategic exit aligns with Zehnder's broader aims of optimizing production and reducing redundant structures.

Zehnder remains committed to enhancing its profitability and is strategically positioning itself for future growth in the Chinese market and beyond.