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. These transactions will generate approximately €21 million in cash inflows, providing the foundation for strategic investments in new growth segments including aviation and defense while significantly enhancing the company's competitiveness.
The capital infusion will improve both the capital structure and long-term liquidity of the Schweizer Group. Subject to standard closing conditions, the transaction is expected to be finalized before the end of 2025. This financial restructuring comes at a critical time as European electronics manufacturers face increasing pressure to develop more resilient supply chains and local manufacturing capabilities.
The funds will support the strategic transformation of Schweizer's business model while securing the company's production location in Schramberg, Germany. The company remains committed to local value creation, enhanced supply chain security, and reliable product supply to European and North American electronics markets. Investments will focus on scaling non-automotive markets while maintaining presence in automotive electronics.
Despite the ownership changes, Schweizer Electronic (Jiangsu) Co., Ltd. will continue as an essential component of Schweizer's fab-light strategy. The company will maintain manufacturing capacities in Germany while offering customers diverse product options from Asia through its global supply portfolio. This balanced approach addresses growing concerns about supply chain vulnerabilities in critical electronics sectors.
Nicolas-Fabian Schweizer, CEO of Schweizer Electronic AG, emphasized the strategic importance of these moves. The targeted investments will strengthen Schramberg's technological capabilities and expand special solution expertise while increasing the robustness and reliability of the value chain. This ensures that sensitive applications and critical infrastructures in Europe can rely on traceable, trustworthy manufacturing. Current industrial policy initiatives in security and defense sectors are creating additional growth opportunities where Schweizer aims to consolidate its position.
Marc Bunz, Chief Financial Officer, noted that the share sale will significantly improve the Group's liquidity and equity position. The company will continue pursuing its efficiency and strategy program with undiminished vigor despite the improved financial position.
The transactions have prompted Schweizer to adjust its 2025 financial outlook. Management now expects the Group to achieve an equity ratio of 20 to 25%, substantially higher than the previous forecast of 9 to 12%. The net gearing ratio is projected to improve to between -20 and +20%, compared to the earlier expectation of 100 to 125%. These improvements reflect the strengthened balance sheet position resulting from the strategic asset sales. Additional information about the company's operations and technology offerings is available at https://www.schweizer.ag.
