Shanghai (ZXZC)- On August 18, ZF Asia Pacific Group Co., Ltd. inked an agreement with the Management Committee of Zhangjiagang Economic and Technological Development Zone to expand the production capacity at its Zhangjiagang base.

Under the agreement, the global auto parts supplier plans to invest $100 million in the capacity expansion project, with the ground-breaking set to be carried out this year and the operation expected to start in 2024. ZF said the new project was likely to generate around 2 billion yuan ($294.881 million) of annual sales in 2027.

Photo credit: ZF

Founded in March 2014, ZF Automotive Technologies (Zhangjiagang) Co., Ltd. owns four factories, which constitute ZF's biggest manufacturing base in the Asia-Pacific region. Involving a total investment of 1.8 billion yuan ($265.089 million) and covering an area of 184,000 square meters, these factories focus on the production of braking systems, passive safety systems, electric steering systems, and chassis components, respectively.

Since its entry into the Chinese market in 1981, ZF has already deployed nearly 50 manufacturing firms, 4 R&D centers, and around 240 after-sales service outlets in over 20 cities across the country.

The group is stepping up efforts to expand its China businesses. In March this year, ZF broke ground on a new technology development center in Guangzhou, which is its fourth R&D hub in China. In July, ZF claimed it would pour €60 million in building a plant in Rizhao, Shandong province. In August, the group inked an agreement to expand its EPS production capacity in China.