Scanfil invests 9 MEUR to expand its plant in China

Translation: Original published in Finnish on 01/30/2026 at 07:41 am EET

Scanfil announced on Thursday that it will invest 9 MEUR in the expansion of its plant in Suzhou, China. The investment will more than double the plant's floor area. In Scanfil's strategy, the Suzhou plant focuses particularly on the local Chinese market, where we understand the company has performed well in recent years. It supports long-term organic growth, but does not cause immediate changes to our estimates regarding investments, growth, or earnings. 

The floor area of the plant will more than double

Scanfil is investing 9 MEUR in the expansion of its plant in Suzhou, which will increase the plant's floor area from 15,700 square meters to 37,000 square meters. The expansion still requires approval from local authorities, which is expected to be obtained in H1’26. If approval is obtained as planned, construction will begin soon after, and the expansion is expected to be fully operational around mid-2027.

Scanfil's Suzhou plant specializes in electronics manufacturing and system integration, serving both the Chinese operations of Scanfil's global customers and local customers in China. The investment follows the traditional model of the company and the contract manufacturing industry, where plant facilities are first expanded, and production machinery is gradually added later over several years, based on demand and customer orders.

The investment responds to strong traction in the Chinese market

According to Scanfil, the investment decision is based on record-high sales and an improved order book in 2025. Although the general macroeconomic situation in China is subdued, we believe Scanfil has performed exceptionally well in China recently. The investment decision supports our view. Thus, we consider the investment justified, and do not believe that a medium-sized investment, on Scanfil's scale, will unreasonably increase the company's China risks.

The investment remains within the framework of our estimates at this stage

We estimate the investment will be mainly allocated to 2026-2027. We have expected Scanfil to make certain organic investments as part of its growth strategy, and the announced investment is within our investment estimates. As the expansion will be fully operational by mid-2027, its most significant revenue impacts will only materialize towards the end of the decade, where we have already estimated moderate growth for the company and its Asian operations. Therefore, the investment does not create direct upward pressure on the company's estimates for investments, revenue, or operational earnings.