ZF lines up new plans for APAC region

ZF Friedrichshafen AG is betting big on China and the Asia-Pacific market. From Shanghai, ZF coordinates business in China and APAC. Over the past few years, Asia-Pacific with China being the main market has developed into one of the most important market regions for the component supplier. In order to further extend research and development there and to reinforce its market presence in the Far East, the technology company is considerably expanding its headquarters for China and Asia-Pacific in Shanghai: the space for offices, laboratories, and test benches will almost be quadrupled from 11,000 to 54,000 square metres.

“In the upcoming years, we want to continue the growth dynamics in the region,” says Rudi von Meister, president for the Region of Asia-Pacific at ZF. “With the expansion of our headquarters in Shanghai, we are laying the foundation for that.” Currently, approximately 400 employees work at the location at China’s east coast; with the new area, ZF makes room for 900 employees. Construction work started today along with the groundbreaking. The building will be completed at the end of 2015. In the next five years, ZF will invest approximately €50 million (Rs 404 crore) in this project.

In addition to offices for administration, the new building will primarily be home to laboratories and test benches. “Here, we will then be able to test products of car driveline and chassis technology as well as commercial vehicle or construction machinery transmissions,” says ZF’s CEO Dr. Stefan Sommer who is also responsible for corporate R&D. “For the first time, engineers from all divisions of the Group are united under one roof.” This makes it easier for the engineers to establish networks and exchange their knowledge in order to adapt products especially to the Asian market. A test facility for the new 9-speed automatic transmission will also be installed in the new building; as of 2017, this new transmission will be produced in China as well.

In 2013, ZF generated sales of €3 billion (Rs 24,255 crore) in Asia-Pacific, with 7 500 employees at 37 locations in 14 countries, an increase in sales of 15  percent compared to 2012. ZF has been active in the Chinese market since 1980 and has been producing on site since 1994. In China, ZF generated sales of €2 billion (Rs 16,170 crore) in 2013, with 5,700 employees at 23 locations. This year, ZF again expects significant growth in China and in Asia-Pacific together with a further increase in staff. The R&D Centre in Shanghai, set up in 2005, is one of ZF’s eight main development locations worldwide.

Illustration: With the new area (red line), the Group makes room for a total of 900 employees.