ZF's ₹1,800 Crore Expansion Plan Starts with New Plant

ZF, a leading supplier of automotive systems catering to passenger vehicles, commercial vehicles, and industrial technology, has recently inaugurated its 19th manufacturing facility in India, located in Oragadam, Tamil Nadu. With a substantial investment of Rs 1,800 crore slated to be realized by 2030, the company aims to bolster its manufacturing footprint and expand operations in the country.

Spanning across 44.08 acres, the new manufacturing facility marks the commencement of the first phase of the project, encompassing a 7,200 sq. mtrs. facility equipped with state-of-the-art production technology by ZF. This facility is geared towards the production of components and systems tailored for electric vehicles (EVs), including electric compressors designed for electric and hybrid commercial vehicle (CV) applications. Over the next decade, the plant will diversify its production to include electronic braking systems (EBS), ASP cartridges, hydraulic ESC, wheel end solutions, digital FBV, ADB, and central drives.

The establishment of the Oragadam plant underscores ZF's commitment to local manufacturing while simultaneously catering to global markets. It is poised to generate employment opportunities and foster talent development in alignment with the anticipated domestic growth trajectories. The facility is positioned to deliver cutting-edge solutions in safety, automation, connectivity, and electrification for both commercial and passenger vehicles, thereby enhancing its export capabilities as a center of manufacturing excellence and frugal engineering.

Moreover, the Oragadam facility aligns with ZF's ambitious goal to achieve climate neutrality by 2040. Emphasizing sustainability, the plant will rely on 100 percent renewable energy sources, including solar and wind power, secured through long-term contracts. Additionally, the facility incorporates rainwater harvesting infrastructure, with a target to achieve water positivity by 2025.

For ZF, India serves as a strategic global hub for manufacturing excellence, bolstering its design, engineering, and manufacturing capabilities. The Oragadam site is poised to establish new standards for digital and sustainable manufacturing practices, reflecting ZF's unwavering commitment to innovation and environmental stewardship.

News by Rahul Yelligetti