ZF Friedrichshafen AG says it has invested approximately EUR15m in setting up a new production location for passenger car axle systems production in Beijing. 

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. ZF has invested approximately EUR15m 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.

The new plant will employ around 350 employees producing 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," said 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," said Coßmann.