Shandong's Rizhao and ZF Group's ZF LIFETECH sign a deal on the third phase of its production base. [Photo/Dazhong News]

ZF Group, a German leading global automotive supplier, signed a deal on the third phase of its production base in Rizhao, Shandong province on April 28. The signing ceremony took place in Jinan, capital of Shandong, and marked a significant expansion of the firm's footprint in China.

The firm's Rizhao base is already a key part of its global manufacturing network, specializing in the production of automotive safety components. The new phase, which focuses on the production of one-piece safety airbags, will add millions of units to the firm's annual output. This expansion is expected to significantly enhance the base's competitiveness in the industry.

ZF Group, which ranks among the world's Top 500 and third in the global automotive parts industry, has a strong presence in Shandong. In addition to Rizhao, it has invested in projects in Jinan, Qingdao, and Weihai, covering a wide range of automotive components and safety systems.

The new project in Rizhao is not only an extension of its existing operations but also a strategic move to further integrate its supply chain in China. The expansion is expected to bring new vitality to Shandong's automotive industry, promoting local economic development and contributing to China's broader goals of high-quality growth and enhanced international cooperation in the automotive sector.

ZF Group's Rizhao base has achieved remarkable growth. Since its first project in 2022, it has expanded to include a second project for steering wheels. The base is expected to supply safety airbags for one in six vehicles globally.