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ZF Expands in Russia

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May 31, 2007—ZF and Kamaz announced plans to complete an expansion of a joint assembly plant in Naberezhnye Chelny, Tatarstan (Russian federation) by 2010. Kamaz, a manufacturer of heavy-duty trucks for the Russian Federation, announced plans to completely change over all vehicle models to ZF transmissions. The workforce at the ZF Kama plant in Russia will be increased from its current 60 employees to 700 workers.

ZF Kama launched production operations in January 2006. The current plant produces 9000 Ecosplit manual truck transmissions annually, both for heavy- and medium-duty commercial vehicles. Kamaz plans to produce 54,000 vehicles this year. The ZF Kama plant currently focuses on assembly operations. Following further expansion, it will also handle manufacturing for the company beginning in mid-2008. According to ZF's press release, approximately 160 million euros will be invested by 2010. Targeted sales volume is expected to reach 250 million euros.

This expansion will require parts supplied from ZF plants in Friedricshafen, Boutheon (France) and Eger (Hungary). These plants will provide about 25% of the parts required by the joint venture in Tatarstan.

“With this internalization strategy, ZF is taking a decisive step towards market penetration in Russia and, in cooperation with the market leader, has gained an optimal starting position in another growth market,” says Wolfgang Vogel, executive vice president of ZF Friedricshafen AG Commerical Vehicle and Special Driveline Technology Division.