Shanghai (ZXZC)- On May 26, ZF Automotive Technology (Shanghai) Co., Ltd. (“ZATS”) celebrated the inauguration of its new plant building, coinciding with the significant occasion of the 20 millionth Electronic Power Steering (EPS) system for ZF's Asia Pacific steering division rolling off the production line.

Photo credit: ZF

This remarkable milestone marks a new chapter for ZF, enabling the company to expand its product portfolio and bolster production capacity for EPS system products in China. By leveraging its extensive range of products, renowned for its exceptional steering performance and incorporating multiple redundancies, ZF is poised to support the integration of advanced autonomous driving features for a multitude of automakers, embracing the paradigm of " Next Generation Mobility", said the company.

Photo credit: ZF

The construction of the expansive new factory building, spanning 6,000 square meters, is nearing completion, representing a substantial investment of 320 million yuan by ZF. This strategic endeavor is aimed at augmenting ZF's production capacity for EPS products. As part of this initiative, over 4,000 square meters of the plant's construction have already been finished. Looking ahead, ZF anticipates a remarkable surge in EPS sales by 2024, with an estimated increase of over 1 billion yuan compared to the sales achieved in 2022.

"The Asia-Pacific region is one of the core markets for the ZF Group. Over the years, we have been increasing our investments in this market,” said Stephan von Schuckmann, Member of the Board of Management of the ZF Group. “Currently, the sales of ZF in Asia Pacific, mainly in China, account for approximately 25% of the Group’s global sales, and our plan is to increase this share to 30% by 2030.

In the Chinese market, ZF has established itself as a frontrunner by seamlessly integrating global product technology with swift updates and iterations. Since starting local production of EPS systems in 2010, ZF has consistently delivered high-quality products to cater to the needs of local customers, said the company. Last year, ZF achieved milestones by mass-producing dual redundant steering products that meet the demanding requirements of Level 3/Level 4 autonomous driving capabilities for four local clients. It also secured steer-by-wire orders from local customers in the same year.

ZF has made big strides in expanding its presence in China, with a network of nearly 50 production companies, four R&D centers, and roughly 240 after-sales service outlets established in over 20 cities across the country. In 2022, ZF initiated a series of new production and R&D projects in cities such as Jinan, Guangzhou, Shanghai’s Anting Town, Hangzhou, Shenyang, Zhangjiagang, and Rizhao. ZF's Guangzhou Technology Center is set to commence operations later this year, while the construction of the Guangzhou Electronics Plant will also begin.