FRIEDRICHSHAFEN, Germany (May 4)—ZF Boge Elastmetall, the rubber-to-metal technology division of ZF Friedrichshafen A.G., is setting up a joint venture in China with a company that already supplies the Chinese ventures of General Motors Corp. and Volkswagen A.G.
The venture, ZF Zhongding NVH Co. Ltd., will start operations before midyear, ZF Boge said, at a plant in Ningguo, Anhui Province, with a workforce of 500. Engineering and sales activities will be based in Shanghai, China. During fiscal 2005 ZF Zhongding NVH should achieve sales of more than $30 million.
"The joint venture combines all activities of both partners in China in the area of rubber-metal products," said ZF Boge Elastmetall managing director Bernd Schmeling, who added that the focus over the coming years will be on the Chinese market.
ZF Boge Elastmetall owns 51 percent of the new company, while partner Anhui Ningguo Zhongding (Group) Co. Ltd. owns 44 percent. The remaining shares belong to the Shanghai Huizhong Economic Development Co. Ltd.
The initial sales goal is possible because the two partners will put all their current market contacts and production volume into the joint venture, ZF said. Anhui Ningguo Zhongding has agreements with Shanghai Volkswagen and Shanghai GM, while ZF Boge Elastmetall is the supplier for the VW platform PQ 35 and for car maker Jinbei.