Schweizer Electronic AG Strengthens Capital Structure Through Chinese Subsidiary Share Sale

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 cash proceeds. This strategic move provides the foundation for future investments that will position the company to access new growth segments including aviation and defense while significantly enhancing competitiveness.

The transactions are expected to complete before the end of 2025, subject to standard closing conditions, and will result in substantial improvements to both the capital structure and long-term liquidity of the SCHWEIZER Group. The funds will be deployed to implement the transformation of the company's strategic business model orientation and secure the Schramberg production location in Germany. SCHWEIZER remains committed to maintaining Schramberg as a production hub, emphasizing the importance of stronger local value creation, enhanced supply chain security, and reliable product supply to European and North American electronics markets from resilient supply chains.

Investments will focus on scaling non-automotive markets while continuing to serve the automotive electronics sector. The company continues to pursue its successful fab-light strategy, with Schweizer Electronic (Jiangsu) Co., Ltd. remaining an essential component of this approach alongside German manufacturing capabilities. 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 the importance of ensuring traceable, trustworthy manufacturing for sensitive applications and critical infrastructures in Europe, noting that current industrial policy initiatives in security and defense sectors present additional attractive growth opportunities. Marc Bunz, Chief Financial Officer, added that the sale of additional shares in the Chinese subsidiary will significantly improve Group liquidity and equity while maintaining the company-wide efficiency and strategy program.

Based on the transactions and assuming completion in 2025, SCHWEIZER has adjusted its financial outlook, now projecting an equity ratio of 20 to 25% compared to the previous 9 to 12% expectation and a net gearing ratio of -20 to +20% versus the prior 100 to 125% forecast. For additional company information, visit https://www.schweizer.ag.