Schaeffler Group (China) Business Report FY ended Dec. 2024

Results

(EUR million)

	FY ended Dec. 31, 2023	FY ended Dec. 31, 2022	Percentage change (%)	Factors
Sales	3,358	3,609	(6.95)	-Affected by the weak market environment, business in China declined by 6.95%.

Start of production

-Schaeffler AG announced that an ultra-high-torque coaxial reduction gearbox, its latest product in the e-axle field, went into production at the Taicang manufacturing site. This coaxial reduction gearbox integrates an innovative cascade planetary gear set and a lightweight differential gear, delivering a maximum output torque of 4,800Nm, an energy density as high as 252.6Nm/kg, and a CLTC efficiency as high as 98%. Featuring a lightweight design, it weighs only 19kg and measures 320mm by 160mm, with small axial layout space for easy vehicle integration. The product is compatible with FWD, RWD, and 4WD variants of the Zeekr 007 sedan and will be equipped in more models that are based on the Geely SEA 800V platform. (From a Schaeffler AG press release dated December 1, 2023)

Plant construction

-Schaeffler announced that it broke ground on the logistics center at its manufacturing base in Taicang, Jiangsu Province. The logistics center will play a key role in the company's logistics and warehousing of automotive components' raw materials and finished products within the Chinese market. Covering an area of 500,000 square meters, the logistics center will be built in two phases. The first phase, with a construction area of 30,000 square meters, will consist of warehouses for automotive components' raw materials and finished products, packaging materials storage, and related auxiliary rooms. It is expected to be completed and put into operation in October 2024. (From a press release dated December 21, 2023)

-Schaeffler announced that it officially inaugurated the New Energy Phase II Factory of its manufacturing base in the Taicang High-tech Industrial development Zone, Jiangsu province. During the inauguration ceremony, Schaeffler also signed an investment agreement for the New Energy Phase III Project. The New Energy Phase II Factory primarily focuses on the production of essential components for NEVs, such as electric motor stators and rotors. The Phase II Factory's commencement will equip Schaeffler with a comprehensive production capability for a full range of electric drive products, including hybrid modules, drive motors, and e-axles. The New Energy Phase III Project spans approximately 70,000 square meters and involves an investment of EUR 200 million (equivalent to CNY 1.5 billion). It focuses on the NEV electric drive sector and manufactures products like hub motors, e-axle reduction gearboxes, and hybrid transmissions. Moreover, it will be equipped with necessary logistics and storage facilities. (From a press release dated November 1, 2023)

-Schaeffler announced the ongoing construction of a project for local high-end bearing capacity expansion at its Yinchuan Plant. In addition, the company plans to invest a total of CNY 500 million in the Plant in the next five years to build supporting facilities and devices for automobiles and industrial application, such as high-end bearing production lines, intelligent detection devices, and automated logistics devices. (From a Schaeffler press release dated June 16, 2023)

-Schaeffler announced the groundbreaking ceremony of a New Energy Vehicle (NEV) core parts project in Taicang, Jiangsu. The project has a total investment amount of USD 300 million and will mainly be engaged in the R&D, manufacturing and sales of drive parts for NEVs. (From a Taicang press release dated January 31, 2023)

Strategic alliances

-Schaeffler AG announced the signing of a strategic cooperation agreement with Hangzhou Qingwei Technology Co., Ltd. (Qingwei Technology), a Geely subsidiary focusing on intelligent chassis control systems. According to the agreement, the two parties will conduct cooperation on steering (especially steer-by-wire) systems leveraging their respective resources and advantages to co-develop system control and core component solutions and safe, intelligent, and superior steering products. They will also commit themselves to setting industry-leading standards for quality and manufacturing to jointly promote the commercial application of intelligent steer-by-wire technologies. Schaeffler AG plans to put into production core components for steer-by-wire systems around 2025 and launch finished fully integrated steer-by-wire systems at a later date. (From a Schaeffler AG press release dated November 15, 2023)

-Schaeffler announced the signing of a strategic agreement on the sustainable development of green steel with Baosteel. The two parties will strengthen cooperation in the field of steel decarbonization based on the common concept of sustainable development, and co-build a green steel supply chain by bringing into play the synergistic effect of pollution control and carbon reduction. (From a Schaeffler press release dated June 29, 2023)

R&D Centers

-Schaeffler Greater China has 2 R&D centers located in Anting, Shanghai and Changsha, Hunan.

Anting, Shanghai

The company opened a new research and development (R&D) building in Jiading District, Shanghai, China. Located at the Auto Innovation Park, the building spans 12,000 square meters, including R&D testing and office areas. The first floor of the building is a testing area which houses multiple laboratories and testing areas. On this floor, there are advanced testing benches and equipment focusing on technical research and application testing of future-oriented technologies such as hydrogen energy, electric drives for New Energy Vehicles, innovative chassis, industrial bearings, robots, and products related to Industry 4.0. In this building, Schaeffler also set up the Schaeffler China Innovation Center, marking its first innovation center in China. The Schaeffler China Innovation Center will facilitate the incubation and industrialization of innovative projects, housing innovation laboratories, workshops, activity areas, and shared workspace. (From a press release dated August 29, 2023)

The global headquarters and R&D center of the company's wheel hub drive business were opened in Shanghai. It is reported that the global headquarters and R&D center of the wheel hub drive business put into use this time will be linked with the global business network of Schaeffler wheel hub drives, providing development, rapid response to market demand. (From Schaeffler official website news on March 22, 2021)

Changsha, Hunan

Schaeffler invested in the construction of "Schaeffler Intelligent Driving Technology (Changsha) Co., Ltd." in Changsha in 2019. The Changsha R&D Center will introduce the Space Drive remote control technology applied to intelligent driving, the intelligent corner module (i-Corner), and other chassis-related products and technologies to the Chinese market.

Certification

-Schaeffler AG announced that its Taicang No.1 Plant passed the Ford Q1 Certification again. In 2018, the plant passed the certification for the first time. To fulfill the business development requirements and optimize the overall deployment in Taicang, the plant was relocated to a new manufacturing site in the city in 2021. (From a Schaeffler AG press release dated January 31, 2024)