Schweizer Electronic AG Strengthens Capital Structure Through Chinese Asset Sales

Schweizer Electronic AG is strengthening its capital structure through the sale of 15% of its shares in Schweizer Electronic (Jiangsu) Co., Ltd. to WUS Printed Circuit (Kunshan) Co., Ltd. along with several Chinese patents, generating approximately €21 million in total cash inflow. This strategic move provides the foundation for important future investments that will give the German electronics company access to new growth segments including aviation and defense while significantly increasing its competitiveness.

The transactions are expected to be completed before the end of 2025, subject to standard closing conditions, and will improve both the capital structure and long-term liquidity of the SCHWEIZER Group. The funds raised will be used to implement the transformation of the company's strategic business model orientation and secure the Schramberg production location in Germany.

SCHWEIZER remains committed to Schramberg as a production location, emphasizing the need for stronger local value creation, greater supply chain security, and reliable supply of products from resilient supply chains to European and North American electronics markets. Investments will focus on scaling the non-automotive market while maintaining presence in automotive electronics. The company continues to pursue its successful fab-light strategy, with Schweizer Electronic (Jiangsu) Co., Ltd. remaining an essential part of this concept despite the ownership change.

Nicolas-Fabian Schweizer, CEO of Schweizer Electronic AG, stated that targeted investments will strengthen Schramberg technologically and expand special solution expertise while increasing the robustness and reliability of the value chain. He emphasized that sensitive applications and critical infrastructures in Europe can rely on traceable, trustworthy manufacturing, with current industrial policy initiatives in security and defense sectors opening additional attractive growth areas.

Marc Bunz, Chief Financial Officer, added that the sale of further shares in the Chinese subsidiary will significantly improve the Group's liquidity and equity, while the company continues to pursue its efficiency and strategy program with undiminished vigor. Based on the transactions and assuming full receipt of the purchase price in 2025, SCHWEIZER has adjusted its 2025 financial year outlook, now expecting an equity ratio of 20 to 25% compared to the previous 9 to 12% forecast, and a net gearing ratio of -20 to +20% versus the earlier 100 to 125% projection.

For additional information about the company's operations and technology offerings, visit https://www.schweizer.ag. The company maintains a presence on various platforms including Schweizer Electronic AG | Flickr at https://www.flickr.com/photos/schweizerelectronicag/ for visual content related to their operations and facilities.