ZF Thailand Selects 75 Suppliers to Establish Export Hub for Auto Parts

ZF (Thailand) has selected 75 Thai suppliers to enhance auto part exports, with a €500 million investment plan aimed at establishing Thailand as a global manufacturing hub amid trade tensions. The initiative includes collaborative events to foster industry partnerships and increase local procurement drastically within five years.

ZF (Thailand) aims to establish Thailand as a global hub for auto part exports by selecting 75 Thai suppliers to enhance its procurement network. The company has announced a significant investment plan of €500 million to improve its operations amidst ongoing global trade tensions.

On Tuesday, ZF (Thailand) hosted the ZF Thailand Supplier Day 2025 in collaboration with the Board of Investment (BOI), bringing together 430 representatives from 200 Tier 2 and Tier 3 auto part suppliers. This event was designed to foster collaboration within the industry and facilitate matchmaking between ZF and potential suppliers.

The suppliers selected by ZF span eight important auto part manufacturing sectors, including chassis solutions, electromechanical assembly, chemical components, casting, steel components, forging and forming, life tech, and non-production materials. This diverse selection underscores ZF’s commitment to utilizing local expertise in various automotive components.

As a subsidiary of the renowned ZF Group, which is one of the world’s foremost Tier 1 auto parts suppliers, ZF (Thailand) contributes significantly to the supply chain by providing key components to major vehicle manufacturers, including those in Europe, America, Japan, South Korea, and China. The strategic focus on maintaining robust partnerships with Tier 2 and Tier 3 suppliers enhances its procurement capabilities.

Since commencing operations in 1996, ZF (Thailand) has established five manufacturing plants in Rayong and Chonburi. The company plans to escalate its annual procurement in Thailand from €50 million to €500 million over the next five years, reflecting its expansion ambitions.

The decision to strengthen operations in Thailand is also a strategic move by ZF to counteract the effects of escalating global trade disputes. The company’s vision is to transform Thailand into a key export hub for auto parts, thereby promoting stability and growth in its international operations. ZF Group’s Executive Vice President of Materials Management, Daniele Pontarollo, attended the event, emphasizing the importance of supplier relationships in ZF’s global strategy.

In conclusion, ZF (Thailand) is strategically positioning Thailand as a significant hub for the global auto parts market through substantial investments and collaboration with local suppliers. The selection of 75 suppliers from diverse manufacturing sectors aims to enhance procurement capabilities while addressing challenges from global trade dynamics. With a clear vision for expansion, ZF remains committed to contributing to the automotive industry’s growth in Thailand and beyond.

Original Source: www.nationthailand.com