ZF Friedrichshafen AG invests 700 million yuan ($99.51 million) to build a research and development center in Guangzhou's Huadu district. [Photo/southcn.com]

ZF Friedrichshafen AG will invest 700 million yuan ($99.51 million) to build a research and development center in Guangzhou's Huadu district, according to the investment agreement signed between ZF and the Huadu district government on Nov 27.

As one of the top three manufacturers of gearboxes in the world, ZF from Germany has been a pioneer in automobile driveline and chassis technology. 

ZF has set up all its business units in China, establishing an Asia Pacific headquarters, two technological centers, as well as about 40 manufacturing factories in China.

ZF's global sales amounted to around 290 billion yuan, of which 21 percent came from the Asia Pacific area.

The R&D center in Huadu, ZF's first in the South China area and third in China, will push forward R&D in areas spanning automotive electronics, automotive safety systems, new energy vehicles, and autonomous vehicles. Other businesses covering the R&D, manufacturing, marketing, and support of automobiles, equipment accessories, and software will also be involved.

The automobile industrial base in Huadu district clusters more than 200 auto parts supporting companies, of which 31 are among the Fortune 500. [Photo/southcn.com]

"Setting up a third R&D center in China is very meaningful to ZF as its showcases our determination to develop the China market, which is the largest automobile market in the world," said Holger Klein, member of the board of management at ZF, as well as CEO of the Asia Pacific and India regions.

"Establishing our third R&D center in Guangzhou's Huadu will improve the communication efficiency with our clients in the South China area, making quicker and better responses to their needs, as well as laying a solid foundation for further cooperation," said Wang Runyi, CEO of ZF China.

The automobile industry is the primary engine for Huadu's economic growth, and its overall production value has accounted for more than 33 percent of the total automobile industry in Guangzhou.

Currently, the automobile industrial base in Huadu has clustered more than 200 auto parts supporting companies, 31 of them are among the Fortune 500.

Huadu will make full use of the two transportation hubs in the district, namely Guangzhou Baiyun International Airport and Guangzhou North Railway Station, as well as its strong automobile industry foundation to develop the new generation of electronic information industry featuring smart networks, said an official from Huadu district.