ZF Automotive UK, a supplier of car parts to global brands, has been granted £432,000 from the Welsh Government’s Economy Futures Fund to optimise its operations.
This investment will help safeguard over 60 jobs at the company’s Pontypool facility, which specialises in manufacturing brake callipers.
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The funding is set to modernise a production line dedicated to fulfilling a contract with Jaguar Land Rover (JLR).
This initiative will not only boost productivity but also provide ZF Automotive UK’s workforce with valuable opportunities to acquire new skills pertinent to advanced manufacturing processes.
ZF Automotive UK Operations director Steven McKenzie said: “Our team in Pontypool is passionately working to continually improve our manufacturing operations, to ensure competitiveness in a challenging automotive sector.
“This funding will support our efforts to purchase equipment and tooling to secure new business, in addition to supporting our heating project to significantly improve our energy efficiency.”
Moreover, the investment will facilitate the creation of apprenticeship and graduate positions, further contributing to the local economy and job market.
Cabinet Secretary for Economy, Energy and Planning Rebecca Evans said: “ZF Automotive is a well established and important employer for Pontypool and the surrounding area with many long serving staff.
“The funding will help the business decarbonise and optimise its operations, bringing highly sought after contracts with Jaguar Land Rover to Wales and upskilling staff as a result.”
In addition to workforce development, ZF Automotive UK plans to utilise the funds to replace its outdated gas heating system, which has been in operation for over 50 years.
The upgrade is expected to enhance energy efficiency at the site, leading to a substantial reduction in carbon emissions.
ZF Friedrichshafen’s sales for the fiscal year 2024 declined 11% from the previous year’s €46.6bn to €41.4bn.
The company said the decline was primarily due to the deconsolidation of its axle assembly product line, which was transferred to the ZF Foxconn Chassis Modules joint venture in April 2024.
Looking ahead to 2025, ZF Group anticipates only weak economic growth in the eurozone and Germany, with vehicle markets potentially staying below previous year levels.
In February, ZF Group announced that it had commenced series production of its state-of-the-art steer-by-wire system.
It eliminates the need for a mechanical connection between the steering wheel and steering gear, is being implemented in Nio Inc’s flagship ET9 model, a Chinese battery electric vehicle (BEV).
