In a strategic move to capitalise on the global shift towards decarbonising commercial vehicles, ZF's Commercial Vehicle Solutions (CVS) division is set to open a new plant in Oragadam, India, on February 14. Simultaneously, the division's US plant in Gray Court has commenced local production of the PowerLine transmission for light CVs in the North American market.
India Expansion
The Oragadam plant, ZF's 19th on the Indian subcontinent and the tenth in Tamil Nadu, will produce electric components, including the air compressor for light and medium-duty commercial vehicles. This expansion aligns with ZF's ‘local-for-local’ strategy, allowing the company to meet growing demand in India and Asia with local production. The facility, spanning over 7,000 square meters, is set to be expanded to 15,300 square meters in a second construction phase, with a total investment of € 200 million until 2032.
Notably, the Oragadam plant will operate with 100% renewable energy, featuring a solar plant generating up to 450 kWp, along with plans for rainwater collection and reuse. The facility aims to achieve water neutrality by 2025.
North America Production
In Gray Court, the US plant has commenced local production of the hybrid-capable PowerLine transmission, marking the second production location after Friedrichshafen. With ramp-up plans envisioning up to 200,000 units next year, this expansion strengthens ZF's presence in the North American market, a press release from the company stated.
Long-Term Growth, Sustainability Strategy
Professor Dr Peter Laier, Member of the ZF Board of Management, emphasises the importance of these plant developments in supporting the expected demand from Indian and Asian manufacturers. He highlights the role of European and German plants as lead plants for production technology know-how globally.
Operating locally brings not only cost benefits but also environmental advantages, reducing emissions associated with transporting complete systems from distant locations.
Also Read:
ZF Unveils Smart Seat Belt Technology For Enhanced Vehicle Safety