ZF Friedrichshafen AG and the Chinese company Wolong Electric Group have agreed to establish a joint venture for the production of components and electric motors for automotive applications. With this partnership, the companies are intensifying their existing cooperation; ZF wants to widen its product portfolio and hopes to improve its competitiveness in the field of electric drive systems. With the JV, ZF plans not only to expand its value chain with key components for electric motors, but also to gain better access to the Chinese market.
The joint venture, named Wolong ZF Automotive E Motors Co Ltd, will produce electric motors and components for use in ZF driveline systems as well as for the open market. An initial success of this partnership is a major order for electric motor components for hybrid and electric drives.
ZF holds 26 percent of the shares in the joint venture based in Shangyu in the Chinese province of Zhejiang. The company expects up to 2,000 employees by 2025.