GERMANY: ZF consolidates aftermarket, rubber, businesses
ZF Friedrichshafen AG is consolidating its aftermarket and rubber-metal business units as part of its integration of ZF Sachs -- acquired in November 2001. The two divisions will be fully integrated into ZF corporate structure as independent business units.
The aftermarket division, to be known as ZF Sachs Trading, consolidates Sachs Handel GmbH and ZF Lemforder International AG & Co. KG (LMI). The rubber-metal division, to be known as ZF Boge Elastmetall, combines ZF Boge and ZF Lemforder Elastmetall.
ZF Sachs Trading products include clutches and shocks, along with steering, chassis, and rubber-metal components and commercial parts. The move allows ZF to optimise existing sales channels in the highly competitive aftermarket sector.
The new division will result in sales of euro 530 million ($US467 million) and a workforce of nearly 1,200. The business unit will be run by a four-member executive team and be directed by Hans-Georg Harter, CEO of ZF Sachs AG.
The formation of ZF Boge Elastmetall will result in annual sales of euro 474 million ($418 million) and employ nearly 3,400 at 12 plant sites in nine countries. It is expected to become the fourth largest international supplier for rubber-metal products and will be managed by an executive committee and directed by Bernd Habersack, chairman of the Board, ZF Lemforder Chassis Technology and president of ZF Group North American Operations (NAO).
Its main product line will include vibration control components and modules for automotive and rail vehicle drivelines and chassis assemblies, as well as mounting systems for engines, chassis and transmissions, and special technical components including airbag housings and oil pans.
ZF Friedrichshafen AG is a global automotive supplier of driveline and chassis technology. Headquartered in Friedrichshafen, Germany, ZF is the 15th largest auto supplier in the world. The company has a total workforce of 55,000 employees at 117 locations in 22 countries, and combined revenues for the group (ZF Friedrichshafen AG and ZF Sachs AG) totaled USD 8.0 billion (EUR 9.1 billion) in 2001.
With sales of $2.0 billion in 2001 (ZF Sachs included), ZF Group North American Operations (NAO) expects annual sales of more than $3 billion by the year 2004.
ZF Group NAO is headquartered in Cincinnati, Ohio, and operates 20 production sites.