ZF Opens 15th Plant in China

ZF FAWER Manufactures Axle Systems and Chassis Components for the Chinese Market

NORTHVILLE, Mich., July 18 -- ZF FAWER Chassis Technology Co. Ltd. -- a joint venture between ZF and Chinese supplier, FAWER -- opened a new axle systems and chassis components plant in Changchun, China last week.

Currently, the 766,000 square-foot facility produces front and rear axles for the Audi A6. During 2006, the plant will begin producing chassis components for the passenger car and commercial vehicle market as well. Current customers for the plant also include Volkswagen, Chery and FAW.

Speaking at the opening ceremony in Changchun, ZF CEO Dr. Siegfried Goll said, "With the production launch here, ZF reaffirms its commitment to the increasingly important Chinese market."

During 2004, ZF employed 1,760 in the Asia-Pacific region with sales of $823 million, $307 million in China alone. The Changchun plant currently employs 170, but will increase to 350 by 2007.

"With our current contracts for the Changchun plant, we expect sales of about $60 million during 2006. For 2007, we expect to boost those sales to $120 million," said Reinhard Buhl, Group Executive of the ZF Car Chassis Technology division.

Next year, ZF FAWER plans to expand production to include control arms and stabilizer bars for passenger cars, along with triangular torque rods, steering knuckles, king pins, tie rods, steering rods and four point arms for commercial vehicles.

ZF Friedrichshafen AG is a leading worldwide supplier of driveline and chassis technology. Headquartered in Friedrichshafen, Germany, ZF is among the 15 largest automotive suppliers in the world. The company has a total workforce of 54,500 at 125 locations in 26 countries, and combined revenues for the group totaled more than $12 billion in 2004.

ZF operates a large manufacturing network in North America, combined with global research and development capabilities, to provide advanced technology to the region. The ZF Group North American Operations Headquarters and Technical Center is located in Northville, Mich., USA.