ZF Friedrichshafen AG and XCMG Construction Machinery Co., Ltd. have signed a joint venture agreement aimed at strengthening their cooperation in the agricultural machinery sector. The agreement was signed in Friedrichshafen, Germany, and marks a significant step in expanding the long-standing strategic partnership between the two companies.
The new joint venture, ZF (Xuzhou) Machinery Co., Ltd., will be headquartered in the Xuzhou Economic and Technological Development Zone in Jiangsu Province, China. The company will focus on advancing technology and innovation for agricultural equipment, supporting the growing demand for modern and efficient farming machinery.
The partnership is expected to leverage the strengths of both companies to accelerate the development of next-generation agricultural solutions and enhance competitiveness in the global agricultural machinery market.
Senior executives from both organisations attended the signing ceremony, including Andreas Moser, Member of the ZF Board of Management and Head of the Industrial Technology and Commercial Vehicle Solutions divisions; Alexander Seeliger, Senior Vice President of Division Industrial Technology and Head of the Off-Highway and Test Systems business unit; Peter Huang, Vice President of Division Industrial Technology and Head of ZF Asia Pacific; and Dirk Brannolte, Vice President of Agricultural Machinery Systems.
The establishment of the joint venture underscores ZF’s commitment to expanding its presence in the agricultural machinery segment while supporting innovation and sustainable growth in the sector through strategic collaborations.
Representing XCMG were Yang Dongsheng, Chairman and Party Secretary of XCMG Group and XCMG Machinery, and Luo Guangjie, Vice President of XCMG Machinery.
Government representatives from Xuzhou included Chen Tangqing, Party Secretary of the Xuzhou Economic and Technological Development Zone, and Ji Hongzhi, Deputy Director of the Xuzhou Economic and Technological Development Zone.
The joint venture will focus on production of advanced powershift driveline systems for agricultural machinery. It aims to combine global technology standards with tailored solutions that address the specific requirements of the Chinese market.
Looking ahead, the partners plan to develop innovative components and system solutions that support the modernization of agricultural machinery in China while also enhancing their competitiveness in international markets.
“China is a key market for ZF. Our 45-year presence in the country reflects our long-term commitment and our strong innovation capabilities,” said Andreas Moser, Member of the ZF Board of Management.
“With this joint venture, we are taking the next step by expanding the local production of advanced powershift technology, a key enabler for the next generation of high-performance agricultural machinery.”
Yang Dongsheng emphasized the transformation currently underway in China’s agricultural machinery sector: “The industry is evolving toward larger scale, higher-end products, and greater intelligence. Tractor powershift technology is at a key stage of rapid development. By combining XCMG’s strengths in high-end agricultural machinery with ZF’s technological expertise, we aim to jointly produce globally competitive solutions and strengthen China’s agricultural equipment industry.”
