ZF Group (China) Business Report FY ended Dec. 2014
Business Overview
-ZF Friedrichshafen AG tapped the Chinese market in conjunction with VW's move into the industry. ZF has expanded its operations in China since 1988. By collaborating with major Chinese commercial vehicle manufacturers, the Company looks to further expand the Group's presence in the China.
Acquisition of ZF Friedrichshafen AG
-In September 2014, ZF Friedrichshafen AG announced that it entered into a definitive agreement with U.S.-based TRW under which ZF would acquire TRW for approximately USD 12,400 million. The transaction is expected to close in the first half of 2015. The Chinese subsidiaries of TRW would be merged into ZF Group.
Divestitures of ZF Friedrichshafen AG
-In September 2014, ZF Friedrichshafen AG sold its Rubber & Plastics business unit to Chinese rubber and plastic products manufacturer Zhuzhou Times New Material Technology (TMT). ZF Boge Elastmetall's Chinese subsidiary, ZF Boge Elastmetall (Shanghai) Co., Ltd., would be merged into Zhuzhou Times New Material Technology (TMT).
-In January 2015, ZF Friedrichshafen AG sold all of its 50% stake in the steering systems joint venture ZF Lenksysteme to the joint venture partner Robert Bosch. The Chinese subsidiaries of ZF Lenksysteme would be merged into Robert Bosch, including ZF Shanghai Steering Systems Co., Ltd., ZF Shanghai Steering Systems (Yantai) Co., Ltd., ZF Shanghai Steering Systems (Wuhan) Co., Ltd., ZF Steering Jincheng (Nanjing) Co., Ltd., and ZF Commercial Vehicle Steering (Shandong) Co., Ltd.
New Company
-BAIC ZF (Beijing) Automotive Chassis System Co., Ltd. was established by ZF Friedrichshafen AG and Beijing Automotive Industry Corporation (BAIC Group) in the Beijing Economic and Technological Development Area (BDA). The new joint venture's products are front/rear chassis modules, which would be supplied to the various cars of the BAIC Group.
Recent Development
-ZF announced that it is considerably expanding its headquarters for China and Asia-Pacific in Shanghai. The space for offices, laboratories, and test benches will almost be quadrupled from 11,000 to 54,000 square meters. Currently, approximately 400 employees work at the location at China's east coast; with the new area, the Company makes room for 900 employees. The building will be completed at the end of 2015. In the next five years, the Company will invest approximately EUR 50 million in this project. At the new building, the Company will be able to test products of car driveline and chassis technology as well as commercial vehicle or construction machinery transmissions. A test facility for the new 9-speed automatic transmission will also be installed in the new building; as of 2017, this new transmission will be produced in China as well. (From a press release on July 23, 2014)
Off the Production Line
-Shanghai Sachs Huizhong Shock Absorber Co. Ltd., which is a subsidiary of the ZF Friedrichshafen AG in China, announced that it produced over 10 million shock absorbers between January 1, 2014 and December 12, 2014. (From news releases issued by multiple sources on January 5, 2015)
R&D Facility
-ZF announced that it was considerably expanding its headquarters for China and Asia-Pacific in Shanghai. The new laboratories, and test benches would be able to test products of car driveline and chassis technology as well as commercial vehicle or construction machinery transmissions. A test facility for the new 9-speed automatic transmission would also be installed in the new building; as of 2017, this new transmission would be produced in China as well. (From a press release on July 23, 2014)
Investment in China
-ZF Friedrichshafen AG and Beijing Automotive Industry Corporation (BAIC Group) have founded a joint venture for developing and assembling passenger car chassis systems, which was named as 'BAIC ZF (Beijing) Automotive Chassis System Co., Ltd.'. The joint venture, in which ZF holds a 51-percent share, is located in the Beijing Economic and Technological Development Area (BDA). Starting in 2015, engineers and plant planners would kick off development work and prepare the installation of production equipment; the launch of chassis module assembly was scheduled for the next year. Then about 200 employees would assemble front and rear chassis modules with a starting capacity of 200,000 units for just-in-sequence delivery. The customers would be the various car brands of the BAIC Group. The two partners are investing more than EUR 10 million in the new plant, which will cover an area of 16,000 square meters. (From a press release on October 9, 2014)