ZF Thailand Initiates Vast Supplier Collaboration to Enhance Auto Part Exports

ZF (Thailand) has identified 75 local suppliers to enhance its procurement and aims to turn Thailand into a global hub for auto part exports with a €500 million investment. The initiative highlights ZF’s strategy to mitigate global trade tensions and expand its operational capacity in the automotive industry.

ZF (Thailand) Co Ltd, a subsidiary of the renowned ZF Group, has initiated a significant movement to establish Thailand as a global hub for auto part exports by selecting 75 local suppliers to enhance procurement capabilities. With a comprehensive investment plan of €500 million, ZF aims to solidify its market presence amidst ongoing global trade tensions.

In a robust industry collaboration, ZF Thailand organized the ZF Thailand Supplier Day 2025, facilitated by the Board of Investment (BOI), which took place at the Grand Ballroom of Rama Gardens in Bangkok. The event witnessed participation from 430 representatives of 200 Tier 2 and Tier 3 auto part suppliers, spotlighting ZF’s commitment to fostering partnerships within the auto manufacturing sector.

The selected 75 suppliers encompass eight crucial automotive manufacturing categories, including chassis solutions, electromechanical components, chemical elements, casting, steel parts, forging, life tech, and non-production materials, indicating ZF’s comprehensive approach in bolstering its supplier network.

As a leading Tier 1 supplier globally, ZF Group plays a pivotal role in supplying essential components and systems directly to vehicle manufacturers, while strategically sourcing from Tier 2 suppliers. Narit Therdsteerasukdi, BOI Secretary-General, highlighted ZF (Thailand) as a preeminent manufacturer of transmission and suspension components, serving major auto companies across Europe, America, Japan, South Korea, and China.

Since commencing operations in 1996, ZF (Thailand) has established five factories in Rayong and Chonburi. The company’s strategic goal is to elevate its procurement in the country from €50 million to €500 million annually over the next five years, significantly enhancing its operational footprint.

Narit emphasized that ZF’s enhancement of operations in Thailand is strategically aligned with mitigating risks posed by escalating global trade tensions. The company is determined to reshape Thailand into a pivotal export hub for auto parts, thereby ensuring resilience and growth in its broader global operations. Noteworthy attendees included Daniele Pontarollo, Executive Vice President of Materials Management and Chief Procurement Officer of ZF Group from Germany.

ZF (Thailand) aims to establish itself as a central hub for global auto part exports through the selection of 75 local suppliers and a substantial investment of €500 million. By enhancing collaboration within the automotive industry and responding to global trade challenges, ZF is set to expand its operational capacity significantly. This initiative not only promises growth for ZF but also positions Thailand strategically in the global auto manufacturing landscape.

Original Source: www.nationthailand.com