ZF (Thailand) Invests in 75 Local Suppliers to Boost Auto Part Exports

ZF (Thailand) has selected 75 suppliers to establish Thailand as a global auto parts export hub, backed by a €500 million investment amidst global trade tensions. The initiative focuses on fostering collaboration with local suppliers and enhancing ZF’s operational capacity.

ZF (Thailand) aims to establish Thailand as a global hub for auto part exports by selecting 75 Thai suppliers. This initiative is backed by a substantial investment plan of €500 million. The move is strategically timed to enhance ZF’s presence amid ongoing global trade tensions.

In collaboration with the Board of Investment (BOI), ZF (Thailand) held a matchmaking event called ZF Thailand Supplier Day 2025, attended by 430 representatives from various Tier 2 and Tier 3 auto part suppliers. This initiative not only fosters collaboration but also strengthens the supply chain in the auto parts sector.

The chosen suppliers span eight critical manufacturing groups: Chassis solutions, Electromechanical and assembly, Chemical components, Casting, Steel components, Forging and forming, Life tech, and Non-production materials. The selection reflects ZF’s commitment to quality and innovation in the auto parts industry.

As a subsidiary of the ZF Group, ZF (Thailand) is positioned as a prominent Tier 1 auto parts supplier on a global scale, providing vital components directly to vehicle manufacturers. The company has a robust supply chain, engaging with Tier 2 suppliers who, in turn, rely on Tier 3 suppliers for raw materials.

Since its establishment in Thailand in 1996, ZF has invested in five factories located in Rayong and Chonburi. The company’s expanded procurement strategy aims to increase its annual investment from €50 million to €500 million within the next five years.

The growth strategy unveiled by ZF aligns with efforts to mitigate the risks posed by escalating global trade conflicts, aspiring to ensure stability in its operations through a strengthened presence in Thailand. The event also featured Daniele Pontarollo, Executive Vice President of Materials Management and Chief Procurement Officer of ZF Group.

In conclusion, ZF (Thailand) is advancing its objective to turn Thailand into a leading global hub for auto part exports by selecting 75 local suppliers. Supported by a significant investment plan, ZF is well-positioned to navigate global trade uncertainties while enhancing its manufacturing and export capabilities. The collaborative efforts highlighted in the recent supplier day signify an important step towards economic growth in the region and the auto parts industry.

Original Source: www.nationthailand.com