The cooperation between ZF and LiuGong started in 1995. The two parties jointly operated a joint venture, Liuzhou ZF Machinery Co., Ltd. in Liuzhou, an industrial city in southern China. The company has 300 employees and is mainly engaged in the production of high-quality construction machinery transmission systems and axles, providing quality services to long-term partners Liugong Group and third-party markets. On the basis of this good cooperation, the formal establishment of the new joint venture, Liuzhou ZF Drive Co., Ltd., will further deepen the cooperation between the two sides in the field of construction machinery vehicle axles.
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On September 12, 2012, ZF (China) Investment Co., Ltd. and Guangxi Liugong Machinery Co., Ltd. signed a new cooperation agreement and formally established a new joint venture, Liuzhou ZF Drive Bridge Co., Ltd. As an important measure to deepen the cooperation between the two sides, the newly established joint venture will tailor the wheel loader axles to meet the needs of the Chinese market. According to the plan, Liuzhou ZF Drive Co., Ltd. will employ 190 people and is committed to designing and producing more than 30,000 newly-designed axle systems to meet the needs of partners Liugong Group and third-party markets.
Wilhelm Rehm, member of the board of directors of ZF, stated: "The "Design to Market" is the strategic concept that ZF has always been adhering to. This is particularly prominent in the field of non-highway systems. The cooperation of the workers will further highlight this concept.†The technology of the new axle series is very reliable, and its price advantage is also a big advantage. Regarding the newly-developed axle products, Wilhelm Rehm, head of ZF's industrial technology division, concluded: "With the cooperation with Liugong, this new axle series product successfully developed will be in line with the Chinese market. demand."
The newly formed joint venture will continue to increase the influence of ZF in China. Dr. Stefan Sommer, CEO of ZF Group, said: “In the past few years, the construction machinery market has been developing very rapidly in China. China's Wheel Loaders accounted for More than half of the global total, while also exporting large quantities of machinery and equipment abroad, this alarming export rate will often lead to market volatility and bring great challenges to the market, and with the establishment of a new joint venture, ZF will We will continue to develop and grow in China. That is to say, we have already prepared for the market challenges in the future."
Wang Xiaohua, chairman of Guangxi Liugong Machinery Co., Ltd., also pointed out: “The excellent cooperation between Liugong and ZF over the years will lay a good foundation for the new joint venture company. Through deepening this mutually beneficial and mutually beneficial cooperation relationship. We will continue to be invincible in the highly competitive construction machinery market."
"Since October 2011, engineers from ZF headquarters, Liugong and ZF (China) have been working closely together to upgrade the existing axle model of the Liugong loader." Hermann Beck, Head of the ZF Non-Road System Business Unit, stated: "After a joint effort of team members, we put forward the concept of a modular axle, based on the standard dry brake (basic model). Add a wet disc brake (high profile) using a large number of common components, which is a new and more advanced technology solution.†This modular concept will significantly reduce production costs. It is expected that 3,300 newly-designed axle systems will be delivered in 2014. By 2018, the annual output of the Liuzhou plant will increase to more than 30,000 units. By then, the number of employees employed in the new plant will reach 190.