German automotive parts supplier ZF Friedrichshafen has opened a new passenger car axle production plant in Kulim, Malaysia.
Currently having a workforce of 74, the new plant will produce axle sets and supply them to the nearby BMW plant in the country.
Initially, ZF will produce completely knocked down (CKD) axles at this plant.
BMW Group, which is the ZF customer on site, will install the front and rear axles in several BMW and Mini model ranges.
ZF chief executive officer Stefan Sommer said: "The opening in Kulim shows that ZF establishes production locations in markets with potential at an early stage."
ZF car chassis technology division international business business Peter Holdmann said that the new plant in Kulim is an expansion of their worldwide network of axle production locations.
"It benefits from the production capacities that are already available in the region and from our experience in Asia-Pacific," Holdmann added.
ZF produces complete axle sets near the customer, with operations in 16 locations globally including eight locations in Asia-Pacific.
