ZF forms Chinese JV
German driveline manufacturer ZF Friedrichshafen, has opened a new facility in Luoyang, China after forming a joint venture with component manufacturer YTO.
YTO currently produces about 80,000 agricultural axles a year. The joint venture will see ZF and YTO produce tractor steering axles for vehicles from 25 to 230hp with the company claiming that by 2020 one in four tractor steering axles for 80 to 125hp tractors on the world market will originate from ZF and YTO.
Wilhelm Rehm, a member of the ZF management board, said: “China is one of our most important markets, we generate about 12 percent of the group revenues in this region, in fact almost €2 billion.”
ZF established its first Chinese business relationship back in the 1980s. Today, the company employs more than 5,700 staff at its 23 production facilities throughout China.