XCMG Group and ZF Friedrichshafen AG have signed a joint venture agreement in Friedrichshafen, Germany, to establish ZF (Xuzhou) Machinery Co., Ltd. The new company will be headquartered in the Xuzhou Economic and Technological Development Zone, Jiangsu Province, China.

Strategic Partnership for High-End Agricultural Solutions

The joint venture will focus on producing advanced powershift transmission systems for agricultural machinery, combining global technology standards with solutions tailored to the Chinese market. Both companies plan to develop innovative components and integrated system solutions that support the modernization of China's agricultural equipment industry while enhancing its international competitiveness.

Industry Leaders Comment on the Partnership

Andreas Moser, Member of ZF's Board of Management, emphasized China's strategic importance: "China is a key market for ZF. Our 45-year presence in the country reflects our long-term commitment and our strong innovation capabilities. With this joint venture, we are expanding the local production of advanced powershift technology, a key enabler for the next generation of high-performance agricultural machinery".

Yang Dongsheng, Chairman of XCMG Group, highlighted the transformation in China's agricultural 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".

A Milestone for Agricultural Innovation

The agreement marks a significant milestone in deepening the strategic partnership between the two companies. ZF Industrial Technology has been active in China since the 1980s, operating production sites in Beijing, Hefei, Liuzhou, and Tianjin. This new venture expands localized production capabilities and supports China's agricultural modernization priorities.