ZF Forms Chinese JV for Tractor Steering Axles

July 25, 2014

Mary Chuff

The Terrasteer TSA 23 front steering axle is manufactured for agricultural machinery. ZF's new joint venture with YTO will continuously increase production of tractor steering axles.

ZF Friedrichshafen AG has formed a joint venture with YTO, a leading manufacturer of construction and agricultural machines, on the production of tractor steering axles for vehicles from 25 to 230 hp (19 to 172 kW). The joint venture, which was signed on July 21, will start next year at a location in Luoyang. The new location will be the first local ZF production site for agricultural machine components in China. Currently, YTO produces about 80,000 agricultural machine axles per annum, according to a press release announcing the collaboration. With the new venture and cooperation with ZF, the production value is expected to continuously increase. According to the release, one in four tractor steering axles for 80- to 125-hp (60- to 93-kW) tractors on the world market will originate from ZF and YTO companies by 2020. About 12% (almost €2 billion or US$2.6 billion) of group turnover is generated in the region, Wilhelm Rehm, Member of the Board of Management of ZF Friedrichshafen AG, said in the release. ZF first established its position in China in the 1980s. Currently, 5700 ZF employees work in 23 production companies across the country.