ZF Invests €36.8M in New Logistics Center & Production Machinery in Germany

[By: ZF Friedrichshafen AG]

ZF has begun construction of a new logistics center in its headquarters in Friedrichshafen, Germany aimed at optimizing material flow and improving site efficiency for its industrial division.
The 32,000-sq.-ft. facility will feature automation and digitalization to modernize logistics, improve product lead times, reduce operational costs and improve processes in response to market demands. ZF is also upgrading its production machinery and measuring room to modernize and support its growing industrial division business, which includes marine transmissions and aftermarket components. “ZF is fully committed to the future expansion of its non-automotive activities, which will directly benefit our marine customers,” says Wolfgang Schmid, Head of ZF’s Marine and Special Driveline Division in North America.  

"Innovation, flexibility, reliability: these strengths make ZF one of the leading suppliers to the automotive and commercial vehicle industry. And we want to maintain these strengths by modernizing our locations," says Peter Laier, the ZF board member responsible for commercial vehicle and industrial technology. "With the logistics center, we can optimize the flow of materials and factory logistics; it makes us more efficient and flexible. Therefore, it is not only financially, but also strategically a clear commitment to the Friedrichshafen location and the excellent skills of its employees."

This new facility and equipment will supply Plant 1 of the ZF Friedrichshafen site with greater quality, production volume and speed to better serve ZF customers. A core component of this is the new automated small parts warehouse, while the entire facility will be run by up to 40 employees. The facility's modern technology enables a significant increase in efficiency and reduces storage costs alone by more than one million euros per year. Additionally, the center will improve lead times for ZF’s industrial division technologies, including its marine and special driveline components.

ZF is continuing to focus on development in the business areas with the greatest growth opportunities to make them more competitive while investing in long-term opportunities for its employees. These include the commercial vehicle and industrial technology divisions based at the Friedrichshafen site. 

A groundbreaking ceremony marked the start of the project that will be completed by the end of 2025 and operational by spring of 2026.