From the middle of this year, ZF will expand its plant in Tuscaloosa, Alabama, to prepare for new business with Mercedes-Benz locally.

ZF has a new supply contract for chassis systems with Mercedes-Benz US International, a Daimler subsidiary located nearby in Vance/Alabama. In addition to the model series produced there currently, ZF will also manufacture the chassis systems for the new C-Class whose production will start in Alabama in 2014.

ZF is investing US$14.6m for a new factory area and machines.

Since 1997, ZF’s Tuscaloosa plant has been delivering to the Mercedes-Benz production lines in Vance/Alabama. Currently, around 300 employees are producing front and rear axle systems for the just-in-sequence production of Mercedes’ M-, R-, and GL-Class.

“We are pleased that Mercedes-Benz is further intensifying its cooperation with us”, says Dr. Peter Holdmann, responsible for chassis systems in the Chassis Technology Division of the ZF Group.

“First-class vehicles are built in Vance; with our contribution, we increase ZF’s market presence in North America.”

ZF says that the new investment will generate 85 additional jobs in Tuscaloosa.