ZF invests in new steering wheel production base in China

The project will cover a new production area of about 6,000 square meters, with new production lines of steering wheel foaming equipment, sewing equipment, assembly and inspection equipment. The business scope covers the R&D, production and sales of automotive steering wheels. The project will introduce the most advanced localized steering wheel automated production process, including steering wheel automatic foaming, automatic polishing, automatic gluing, automatic assembly and inspection and other advanced processes and equipment.

The products of the project are tailored to domestic and international OEMs, supporting models ranging from premium EV to mainstream brands of volume vehicles. The products cover high-end hands-off detection function designated for autonomous driving, heating function for increased comfort, as well as low-emission foam and leather alternative wrapping solutions.

”Asia Pacific, mainly China, is dynamic and full of opportunities. The project reflects ZF's determination and confidence in the Chinese market,” said Mr. Stephan von Schuckmann, Member of the Board of Management (BOM）, ZF Group. “We remain committed to China with continuous investment to advance our localization strategy and next generation mobility.”

“In 2022, ZF airbag project was signed, went into operation and achieve SOP in the same year in Rizhao. One year of successful practice fully proves that our strategic decision is correct. The new plant will adopt digital site management, which will actively advance the development of automotive electrification and automation and facilitate the transformation of Chinese automotive manufacturing,” said Renee Wang, Executive Vice President, President of ZF China and Operation Asia Pacific, ZF Group.

“ZF has always regarded safety as the cornerstone of the development of next-generation mobility, and the launch of this base marks another significant breakthrough in the development of ZF's passive safety project in the Asia Pacific region, which will better empower safe mobility,” said Dr. Michael Eisenbarth, Senior Vice President Operations, Division Passive Safety Systems, ZF Group.

Dr. Nick Song, Vice President, Head of Passive Safety System, Region Asia Pacific, said: " Since 2023, the municipal government of Rizhao and ZF Group senior management have had many in-depth exchanges, which has strengthened our confidence to establish our roots in Rizhao. This project is independently operated by the local Chinese team and will become ZF's new steering wheel production base in the Asia-Pacific region. We will give full play to Rizhao's local human resource advantages and unique port location to serve both domestic and international customers. ZF has always considered safety as the cornerstone of developing the next generation of mobility."

Lu Donglei, Deputy Party Secretary of the Rizhao Economic and Technological Development Zone (RETDZ) Work Committee and Deputy Director of the RETDZ Management Committee, said: ”ZF Group’s expansion of Rizhao production base and the investment in the steering wheel project are of great significance to our city to enlarge and strengthen the automotive industry chain. It will also help us open wider to the outside world and promote high-quality development. We will make every effort to provide better services, to create a first-class business environment, to promote the enterprises in Rizhao to achieve greater development, working together to create a win-win cooperation and a better future."

ZF Group's Passive Safety Division currently operates nine plants in China, located in major automotive production bases, producing all types of mainstream steering wheel products, safety airbag products and seat belt products, including products at the forefront of technology such as hands-off-detection steering wheel, seamless driver airbag module, bag-in-roof module, ramp-airbag module, center airbag module, active control retractor, load-limiting buckle, hood-lifter, etc. Sales of ZF’s passive safety division in China reached RMB 6 billion in 2022.