Shanghai (Gasgoo)- ZF officially inaugurated its Chassis Component and Active Kinematic Control (AKC) system project at its Zhangjiang base on Nov. 19, signaling another major milestone for the German auto parts giant to localize its world-leading technologies and strengthen its investments in China, according to a post on ZF’s WeChat account.
ZF plans to invest about $100 million in expanding the product variety and production capacity of chassis components at the base in Zhangjiagang, Jiangsu Province. The project is expected to be operational in 2024 and generate annual sales of around 2 billion yuan ($279.31 million) in 2027.
Upon completion, the chassis components factory will produce control arms, steering knuckle, tie rods, stabilizer links, etc.
Photo credit: ZF Group
In addition, the new project also marks the global debut of ZF’s AKC technology outside of Europe. ZF said AKC, also known as rear wheel steering technology, has been widely used by many European and American luxury brands to significantly improve the safety, dynamic performance, handling and comfort of electric or combustion engine passenger cars. The company has so far produced more than one million sets of the AKC system.
ZF noted that the first localization project in China is expected to start delivery in 2024 and its annual output of the AKC system is expected to exceed 1 million units over the next three to five years.