German automotive components manufacturer ZF Friedrichshafen AG is set to boost local procurement in Thailand, aiming to establish the country as a key global production hub. This strategic decision comes in response to the recent announcement by the US regarding substantial increases in import tariffs for several major trading partners, including China, potentially triggering a global trade conflict.
Currently operating five production plants in Thailand, situated in Rayong and Chonburi provinces, ZF specializes in manufacturing a diverse range of automotive components such as transmission systems, chassis components, and safety systems. The company is now focusing on enhancing its local supply chain and expanding production within Thailand to facilitate increased exports to international markets.
During the ZF Thailand Supplier Day 2025 held in Bangkok, Narit Therdsatheerasak, the General Secretary of the Thai Board of Investment (BOI), confirmed ZF (Thailand) Company Ltd’s plans to ramp up outsourcing from Thai-based companies significantly over the next five years, aiming to elevate the procurement value from EUR 50 million to EUR 500 million.
The event witnessed participation from representatives of over 200 companies eager to leverage ZF’s revised procurement strategies in Thailand. ZF has identified 75 potential tier 2 and tier 3 suppliers with whom negotiations will commence to advance its expanded outsourcing initiatives. These suppliers span across eight primary product categories, encompassing chassis solutions, electromechanical assemblies, steel components, castings, forging, chemicals, passive safety systems, and non-production materials.
Moreover, ZF has extended invitations to component manufacturers from various ASEAN countries, China, and other regions to partake in business matching negotiations and consider new investments in Thailand. This collaborative approach aims to strengthen the local automotive industry ecosystem and foster mutually beneficial partnerships.
As ZF solidifies its presence in Thailand and bolsters its local procurement activities, the country is poised to emerge as a key player in the global automotive supply chain. The company’s commitment to enhancing local sourcing and production underscores its long-term vision of establishing Thailand as a pivotal hub for automotive manufacturing and export.
