As China’s automotive industry moves faster in pursuit of intelligence, the proportion of high-value, high-performance electronic components in the total value of vehicles are rising rapidly. On December 12, global technology company ZF Group announced that it signed an investment agreement with the Guangzhou Huadu District Government to build a highly-automated and intelligent plant for new electronics and advanced driver assistance products in Guangzhou to increase production capacity in the areas of autonomous driving, cameras, sensors and brake electronics from China. Construction of the new plant will start as of 2023, with mass production scheduled for 2025.
Continued focus on “Next Generation Mobility”
According to the plan, investment for Phase I of the new plant covers a planned acreage of 12,000 square meters, the plant will build an Industry 4.0 electronics manufacturing and assembly areas with anti-static, constant temperature and humidity features, meeting Class 100,000 cleanroom standards. It will also include production support facilities such as warehousing, IT, maintenance, laboratories, and modern office space that meets ZF Office 3.0 standards, with a total staff at planned capacity of 700 people. The new plant will cover four product lines: Advanced Driver Assist Systems, HPC, safety electronics and chassis control.
Supercharging Guangzhou‘s automotive industry
The automotive industry chain in the Guangzhou area (Pearl River Delta region) is one of the largest automotive clusters in China, with a complete supply chain for engines, complete vehicle bodies, interior and exterior trim in the traditional automotive sector. The ZF Group will undoubtedly inject super energy into the Guangzhou automotive industry when it breaks ground on this new R&D center in Huadu, Guangzhou.
Guo Yonghang, Mayor of Guangzhou, said that Guangzhou adheres to industry-first and manufacturing-driven principle, fully supports innovative growth of automotive enterprises, and builds an efficient industry chain and supply chain to accelerate the development of a national and global leading intelligent car ecosystem. Guangzhou hopes that ZF Group will play a leading role in the industry, build on the good foundation of cooperation and attract more global partners to locate in the city. Guangzhou will continue to provide quality and efficient services, create a superior development environment and work hand in hand with major enterprises to grow the auto industry to a new level.
“ZF is accelerating its transformation and leading future mobility through new technologies,” said Dr. Holger Klein, Member, Deputy Chairman of the Board of Management, ZF Group, “We are doubling down on China and upgrading the Chinese automotive industry, playing an increasingly important role in an open ecosystem.”
Renee Wang, President of China and Senior Vice President Operations Asia Pacific, ZF Group, expressed her appreciation for the excellent investment environment in Guangzhou and her confidence in the Group’s future development in the city. As a Fortune 500 company and a leading global supplier of automotive parts and technology, the Group has maintained close cooperation with Guangzhou for a long time. She expressed hopes that both sides will take this cooperation as an opportunity to continuously expand the areas of partnership and deepen the level of cooperation.
Building a highland of innovation for intelligent and networked vehicles in the Greater Bay Area
The automotive industry is a core driving force of Huadu’s economic growth. Huadu’s automotive industry is highly concentrated, well supported and has a complete industrial chain, with an annual output of about RMB 180 billion and an annual production and sales volume of some one million units, accounting for more than 33% of the total output of Guangzhou’s auto industry.
After nearly 20 years of cultivation and development, Huadu District has formed a complete automobile industry chain, including the four major automobile assemblies: engine, chassis, body and electrical equipment, basically covering the development and production of key components, and has established solid supply relationships with large auto enterprises, and exported to more than 100 countries and regions. At present, Huadu District is making every effort to build a highland for innovation of intelligent and networked vehicles in the Greater Bay Area. The first phase of the intelligent and networked vehicle test base, covering an area of about 153 hectares, will be completed in 2024.