ZHANGJIAGANG, Jiangsu – ZF held a groundbreaking ceremony here for its chassis components production plant on May 16.
As the third phase of ZF’s Zhangjiagang production base, this project will cover a land area of 40,000 square meters with total investment of ¥650 million. When the plant is completed for operation, it would have an employment force of 400 people and an annual production capacity of 7 million control arms, 2.4 million drawbars, 1 million steering knuckles and 3 million sets of metal plastic gears. Sales revenues are expected to reach ¥2 billion with profit and tax of ¥90 million.
The new chassis components plant is expected to become operational in July 2020 and it will enhance the utilization of lightweight materials in production.
ZF has already established three production facilities in Zhangjiagang, which produce parts and components for steering, brake and safety systems respectively. The new chassis components plant in Zhangjiagang will not only expand ZF’s production capacity in China, but also increase its sales revenues in the country.
According to a ZF report released in April, the multinational supplier achieved sales revenues of €6.2 billion in China in 2018, up 5.1 percent from that of 2017, accounting for about 77.5 percent of Asia-Pacific revenues of €8 billion and nearly 17 percent of total global revenues of €36.9 billion in 2018.