Automotive parts supplier ZF Friedrichshafen has commenced production at its new EUR15m passenger car axle systems plant in Beijing, China.
The company will assemble several 10,000 passenger car axle sets annually for its client Beijing Benz Automotive (BBAC), a joint venture of Daimler AG and its Chinese partner BAIC.
The new plant, which is owned 100% by ZF, spans an area of 32 000m2 and has a workforce of 350. It will supply complete front and rear axle systems for the current model ranges of the Mercedes C- and E-Class produced in China.
Assembly for the future Mercedes models will also take place at this new plant in the next few months.
With this investment, the company has expanded its production locations in China to 21.
ZF Friedrichshafen car chassis technology division head Uwe Comann said that the assembly line concept in Beijing allows them to respond flexibly and directly to model or volume changes at their customers.
"The ZF customers expect high product quality that is available globally. We are delighted to provide the supplies for our long-standing partner Daimler in Beijing with the new plant for passenger car axle systems," Co mann added.
