CN - Focus On Local Markets: ZF Opens New Plant For Passenger Car Axle Systems In Beijing

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- ZF presence extended on Chinese market
- Chief Executive Officer Dr. Stefan Sommer: "ZF product quality available worldwide"
- Just-in-sequence supply to Beijing Benz Automotive

ZF Friedrichshafen AG has invested approximately EUR 15 million in setting up the new production location for passenger car axle systems production in Beijing (China). On September 25, 2013 production got the green light officially from Uwe Coßmann, Head of the Car Chassis Technology Division. At the new plant, ZF assembles several ten thousand passenger car axle sets a year for its customer Beijing Benz Automotive (BBAC).

"The new location in Beijing is an important investment for the extension of ZF’s global production network," said Dr. Stefan Sommer, Chief Executive Officer of ZF Friedrichshafen AG, at the official plant inauguration on September 25, 2013 in Beijing. ZF has invested approximately EUR 15 million in the Chinese capital to set up its first production location, which is owned 100 percent by ZF.

As a result, the technology company has increased the number of production locations in China to 21, thus further extending its presence in one of its most important single markets: On an area of 32 000 square meters, roughly 350 employees produce passenger car axle sets for Beijing Benz Automotive, a joint venture of Daimler AG and its Chinese partner BAIC.

"The smart assembly line concept in Beijing allows us to respond flexibly and directly to model or volume changes at our customer’s," explains Uwe Coßmann, Head of ZF’s Car Chassis Technology Division. The new plant supplies complete front and rear axle systems just in sequence for the current model ranges of the Mercedes C- and E-Class produced in China. In the next months, assembly for the future Mercedes models will take place at the new ZF axle assembly plant. "The ZF customers expect high product quality that is available globally. We are delighted to provide the supplies for our long-standing partner Daimler in Beijing with the new plant for passenger car axle systems," says Coßmann.

The new axle assembly plant in China is thus part of the Group’s worldwide localization strategy and reinforces ZF’s role as a global player in the growth region of Asia-Pacific. As part of this strategy, ZF is not only investing in production locations: In accordance with the design-to-market principle, China is also gaining importance within the ZF development network. This enables ZF to consider customer requests and local market requirements in detail and accurately at its Engineering Center in Shanghai.

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