ZF (Thailand) Selects 75 Suppliers to Establish Auto Part Export Hub

ZF (Thailand) aims to establish Thailand as a global hub for auto parts exports by selecting 75 local suppliers and investing €500 million. The initiative aligns with ZF’s strategy to counteract global trade tensions and enhance procurement within five years.

ZF (Thailand), a subsidiary of ZF Group, has embarked on a plan to establish Thailand as a global hub for auto parts exports, selecting 75 local suppliers for this initiative. With an investment of €500 million, ZF seeks to expand its procurement capabilities, particularly in response to ongoing global trade tensions.

The recent ZF Thailand Supplier Day 2025, hosted in collaboration with the Board of Investment (BOI), featured participation from 430 representatives of 200 Tier 2 and Tier 3 auto part suppliers. This matchmaking event aimed to enhance industry collaboration and promote the selected suppliers’ integration into ZF’s global supply chain.

The chosen suppliers were categorized across eight primary manufacturing sectors: chassis solutions, electromechanical and assembly, chemical components, casting, steel components, forging and forming, life tech, and non-production materials. This selection underscores ZF’s commitment to fostering local partnerships while streamlining its production processes.

As one of the world’s largest Tier 1 auto parts suppliers, ZF Group maintains a pioneering presence in multiple regions including Europe, America, Asia-Pacific, and Africa. ZF Thailand is recognized for its production of transmission, suspension, and chassis components, serving significant vehicle manufacturers across major automotive markets.

Since its establishment in 1996, ZF (Thailand) has invested in five manufacturing facilities located in Rayong and Chonburi. To support its growth strategy, the company aims to elevate its annual procurement from €50 million to €500 million within a five-year timeframe, signifying a substantial commitment to the Thai economy.

Narit Therdsteerasukdi, Secretary-General of the BOI, emphasized that ZF’s strategy to bolster its operations in Thailand is a proactive response to the escalating global trade conflicts. This move is intended to reinforce Thailand’s role as a vital hub for auto part exports, ensuring stability in ZF’s global operations.

In conclusion, ZF (Thailand) is strategically positioning itself to establish Thailand as a major hub for auto part exports by selecting 75 local suppliers and investing €500 million. This investment aligns with global trends and aims to alleviate the impact of trade tensions, supporting both local industry and ZF’s expansive supply chain operations. The recent Supplier Day event demonstrates ZF’s commitment to fostering collaboration within the automotive manufacturing sector.

Original Source: www.nationthailand.com