The factory goes vertical

While skyscrapers and high-rises have long existed for living and working, the idea of a vertical factory is less common. Already a pioneer in urban manufacturing, V-ZUG is now launching a six-floor factory: the Zephyr Ost.

When V-ZUG decided to stay and invest in Zug – one of the most populated and expensive areas of Switzerland – the impact on the community and the sustainability of production facilities were two of the main factors to consider, both for managers and architects. So, the concept of a vertical factory was put on the table. «Verticalisation means that the production areas are no longer housed on a single floor. Instead, they are distributed across different levels», explains Markus Estermann, Head of Industrial Automation at V-ZUG. «No longer spread across the site, they are located on six floors». The advantage is that distances are shorter, which in turn helps to optimise processes. Also, using automated logistics, the company can streamline movements: shorter chains lead to higher efficiency.

Thanks to the vertical factory, V-ZUG is giving up 60% of the land of its original site. «We can save space and at the same time ensure that growth ambitions can be achieved», says Adrian Theiler, Chief Operations Officer. «It’s a generational change for the production and logistics facilities, which brings a significant contribution to the modernisation of the company as a whole». Speaking of innovation, Zephyr Ost is also part of the Multi Energy Hub: it harnesses power from lake Zug, produces electricity through photovoltaic panels and shares excess energy with the surrounding community.

"A more sustainable type of concrete than conventional options was used for the project. It contains a high volume of recycled materials and can permanently store CO2." - Michael Roth, architect at Diener & Diener

Starting in mid-2025, a workforce of around 200 employees will be based at Zephyr Ost. «The building’s architecture puts human beings in the foreground», explains Michael Roth, partner of Diener & Diener, the Swiss architectural firm behind the project. Already involved in the Zephyr Hangar project, Diener & Diener has been assigned Zephyr West, a building that will host the company’s offices in the future.  «This is a place of work, so it was imperative to make it as attractive as possible, while offering all the conveniences an employee could need. We think that having rooms filled with daylight and expansive views is an excellent way to make this a good place to work».

What also distinguishes the new V-ZUG’s production plant from traditional models is its location. Like the other two buildings that form the so called “trilogy” – Zephyr Hangar and Mistral – Zephyr Ost is well integrated into the cityscape. «The major challenge we faced was the sheer size of the building, which is 70 meters in length and 50 meters deep», continues Michael Roth, «Even so, it doesn’t actually look this big, whether you are viewing it from the surrounding streets or on location. This allows it to fit in seamlessly with the neighbouring districts, where people live, do various jobs, study and enjoy their leisure time».

After all, V-ZUG has a long history in Zug, as Adrien Theiler recalls. «Zug is the home of V-ZUG. This is where we pursue innovation, where we conceive, develop and manufacture new products and deliver them to our customers’ homes. We’ve been here for 111 years, and with this new future-ready factory, we are prepared to serve the markets competitively in the years to come».