ZF Friedrichshafen Expands North American Operations

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated, Houston, Texas). ZF Group NAO (Florence, Kentucky), the North American unit of ZF Friedrichshafen AG (Friedrichshafen, Germany), has been expanding on several fronts in North America. ZF reported $2 billion sales in 2001 and expects that to climb to $3 billion in 2004. Not bad in a distressed automotive scene. ZF expects its North America operations to climb to 30 percent of the company's total sales, from the present 25 percent. This expansion in sales has engendered a rash of plant expansions at several of ZF's plants in the past year, as well as one new facility.

The Duncan, South Carolina, plant, which manufactures axle systems for the BMW Z4 and X5 model vehicles, completed a 40,000 square foot expansion last year at one of the plants on this two-plant campus.

In Tuscaloosa, Alabama, the company began a 38,000 square foot expansion to its existing plant in August 2002, which is expected to be finished by the end of May 2003, after which time they will be installing new production equipment. This plant makes complete axle systems (front, rear, and differential) for the Mercedes M-Class vehicles, the only plant in the world to do so. Harrison Construction of Northport, Alabama, is general contractor for the project.

The Gainesville, Georgia, plant is presently adding a new line for light truck and construction machinery drive axle assemblies. The new addition is expected to be operational by mid-2003. Pattillo Construction Corporation of Stone Mountain, Georgia, is general contractor for this project.

The largest expansion will be at the ZF Technical Center in Northville, Michigan. This facility was completed two years ago, and serves as the computer hub for ZF's North American operations. The company, after having bought an adjacent property, is expanding the existing 137,000 square foot facility to 235,000 square feet. They also expect to double the number of employees, and by 2009 they plan to have 500 employees at this facility. ZF Sachs, another ZF Friedrichshafen entity, will be integrated into this unit, bringing all ZF's technical capabilities together in one location. Plans for this addition are fluid, and there have been a number of changes to the original plans, including a skywalk. The Design/Build firm for this project is DeMattia Group of Plymouth, Michigan. Completion is scheduled for October 2004.

A 140,000 square foot expansion to the original 389,000 square foot plant in Guadalajara, Mexico, plant was completed in the summer of 2002, enabling the company to extend the product line of shock absorbers, struts, and compete corner modules to customers such as Ford, DaimlerChrysler, Volkswagen, General Motors, and Nissan.

Under construction at the present time is a 100,000 square foot plant at Ford's new Chicago Supplier Manufacturing Campus (see related IIR article), to make front and rear axle chassis systems for the Ford Freestyle and Ford 500 models. This plant should be operational in March.

ZF Friedrichshafen has 22 facilities in North America. According to a statement by Bernd Habersack, Director of ZF NAO, the company has earmarked $700 million for investment in expansions and new construction for its North American operations between 2002 and 2004.

ZF Friedrichshafen is the 15th largest automotive parts supplier in the world, and the third largest in Germany. The firm was founded in 1915 by Ferdinand von Zeppelin (the Zeppelin inventor).