ZF Expands Electronic Power Steering System Production in China Again within Two Years

On November 29th, ZF Automotive Technology (Shanghai) Co., Ltd., a subsidiary of the ZF Group, signed a second-phase investment agreement for the expansion of electronic power steering (EPS) systems with the Shanghai Anting Economic Development Center. This agreement aims to further expand the production scope and capacity of EPS systems in China. Notably, this marks the second expansion since the signing in July 2022, with the previous project completed in May 2023. The continuous expansion in China fully demonstrates ZF's commitment to localization and its strong foothold in the Chinese market.

According to the newly signed agreement, ZF will lease a site in Anting Town, Jiading District, Shanghai, adding approximately 3,700 square meters of floor space to expand the production of EPS products. The project is scheduled to be officially launched by the end of 2025.

ZF's EPS systems are characterized by a comprehensive product range, excellent steering performance, and high redundancy, supporting advanced driver assistance systems (ADAS) up to Level 3 and beyond. They exemplify the application of the latest power electronics and high-performance motor control technologies in automotive steering systems, significantly improving vehicle dynamics, static performance, driver comfort, and safety. Moreover, the electronic application of EPS and its lower energy consumption effectively enhance the product's environmental performance. ZF has successfully introduced closed-loop torque control logic into these products, offering dual-redundant motor control system assemblies (EPP - Electronic Power Pack) capable of supporting Level 3+ autonomous driving, as well as mechanical systems with higher rack forces, meeting customers' future mobility needs and possessing broader market prospects.

As an industry leader, ZF has consistently synchronized its global product technologies and updates in the Chinese market. Since successfully localizing EPS production in 2010, ZF completed the introduction of the first domestic EPS system to a Chinese automaker in 2012 and has since maintained high-quality service to local customers. In 2022, dual-redundant steering products capable of supporting Level 3/Level 4 autonomous driving achieved mass production, assisting OEMs in fulfilling their mission of vehicle autonomy upgrades. Additionally, ZF has secured local customer orders for steer-by-wire systems, with mass production expected in the first quarter of next year.

Amid a complex and competitive market environment, ZF continues to invest and innovate, firmly advancing its localization strategy. Over the past two years, ZF has successfully invested in and opened new factories and technology centers in eight cities across China, introduced a series of new technologies, and brought more core engineering projects to the local market, providing a solid foundation for future business development. In terms of localization, ZF achieved local mass production of rear-wheel steering in China in 2024, and plans to localize systems such as steer-by-wire by 2025.

At the signing ceremony, Wang Runyi, Executive Vice President of the ZF Group, President of ZF China, and President of ZF Asia-Pacific Operations, stated, "Shanghai is the strategic base for the ZF Group's Asia-Pacific headquarters, and Anting is a fertile ground that attracts and gathers ZF's cutting-edge technologies and talents. Having been established in Anting for nearly 30 years, we are grateful for the comprehensive support and assistance provided by the Anting Government to the ZF Group. The second expansion of the EPS project within two years is a strategic decision based on ZF's profound insight into and firm confidence in the Chinese market. This will enable us to better meet customers' increasingly diverse and high-end needs, further consolidating ZF's leading position in the automotive components field with continuously improved production efficiency and cost competitiveness. At the same time, we are willing to deepen long-term cooperation and mutual benefit with Anting in the field of automotive technology, contributing to its industrial upgrading and innovative development."

ZF Automotive Technology (Shanghai) Co., Ltd., which includes the Anting Technology Center and the Automotive Electronic Power Steering Production Plant, is primarily engaged in the development of products and technologies for automotive active safety systems (braking and steering), passive safety systems, electronics and advanced driver assistance systems, and vehicle motion control systems, as well as the production of automotive electronic power steering systems, including industry-leading products such as column-type EPS, belt-driven EPS, and dual-pinion EPS.

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