ZF Group Invests US$43.2 Million in State of Mexico

The Germany-based technology company ZF Group has recently announced an important investment of US$43.2 million in the State of Mexico. The company aims to expand its manufacturing capacity in Mexico with a new production plant. 

ZF is a global technology company that develops and supplies systems for passenger cars, commercial vehicles and industrial technology to enable the next generation of mobility. The company provides comprehensive product and software solutions in four technology domains: vehicle motion control, integrated safety, automated driving and electric mobility for established vehicle manufacturers, as well as new transportation and mobility service providers.

According to the company, the investment will be distributed between 2023 and 2024 and will consider the construction of a new plant in Toluca, State of Mexico, which will have two high-capacity assembly lines for the just-in-sequence manufacturing of front and rear axles, as well as suspension modules for passenger electric vehicles (EVs).

The company said construction will begin immediately and is expected to end in 3Q23. ZF said it expects to hire the first employees in 3Q23 to commence production in 1Q24. 

According to ZF, the new plant is expected to create 150 new job opportunities over the course of the next two years and will be 8,000m² larger than the plant it is replacing. “As the automotive industry moves towards greater electrification, automation and connectivity, our manufacturing capabilities are also evolving. We are excited to establish this new and advanced manufacturing plant in Toluca, which demonstrates our commitment to our customers and employees in the region, as well as our dedication to advancing Next-Generation Mobility,” said Dale Chon, North American Vice President for the Automobile Technology Division, ZF. 

ZF has invested significantly in Mexico throughout the years. In 2022, it also invested in Toluca over US$50.2 million to enhance the production of control arms, stabilizer bar links and steering ball joints. Investment has not been limited to the State of Mexico. The company has over 18 locations all over the country, which include 11 manufacturing plants that produce chassis, steering, brakes and other components. It also manages three production centers reserved for aftersales services. In 2022, the company opened a new R&D Center and Shared Services facility in Monterey, Nuevo Leon. It is also constructing a manufacturing plant in Monterrey for the production of advanced electronics and safety devices, which is set to begin operations in 2023.