ZF acquires chassis, axle systems plants in India

ZF and Hero Motors Ltd have signed a contract establishing the joint venture enterprise ZF Hero Chassis Systems. ZF is acquiring 50 percent of Hero Chassis Systems including two assembly plants in Halol, around 300 miles north of Mumbai, and in Talegaon, near Pune having an annual installed capacity for assembling 1.6 lakh units of chassis and axle systems Over the next two years ZF Hero Chassis Systems will invest Rs 80 crore to establish two plants in Gurgaon and Chennai. These two plants are expected to have an annual installed capacity for assembling 2.9 lakh units of chassis and axle systems. The joint venture company will initially focus on the small car segment and then diversify into bigger cars. Initially, some 100 employees will be engaged in the assembly of car axles for General Motors. The contract was signed by Peter Holdmann and Hero Group's company director Pankaj Munjal in New Delhi.Adidas