Technology company ZF enters industrial gears market by acquiring Bosch Rexroth’s wind turbine gearbox business.
ZF Friedrichshafen will take over Bosch Rexroth’s gearbox business, providing an entry into the industrial gear market and strengthening ZF’s position in the gearbox industry. The agreement was signed on May 13, 2015, but is still subject to the approval of the antitrust authorities.
“Strengthening our non-automotive segment is an important objective of our long-term corporate strategy,” says ZF’s CEO Dr. Stefan Sommer, commenting on the transaction. “The acquisition of the industrial gears and wind turbine gearbox segments of Bosch Rexroth AG is an excellent supplement to our Industrial Technology portfolio and opens up new customer groups.”
In 2014, Bosch Rexroth generated sales of approximately EUR 300 million with the large gearbox business. In the same year, ZF generated roughly 12% of its group sales with the Industrial Technology division in which the company bundles its off-road activities. This share is expected to grow in the long term.
ZF is taking over the two production locations of Bosch Rexroth AG in Witten (North Rhine-Westphalia/Germany) with almost 900 employees and in Beijing (China) with more than 300 employees, as well as the service location in Lake Zurich (USA) that has approximately 15 employees for a total of more than 1,200 employees.
The primary plant in Witten is not only home to production but also to the administration, development, and sales departments for large gearbox technologies (industrial gears and wind turbine gearboxes). In Beijing, Bosch Rexroth exclusively produces wind turbine gearboxes. At both locations and in Lake Zurich, the company offers its customers support services.
“We are confident that our large gearbox business will benefit from ZF’s transmission expertise, and be able to make the best possible use of its growth opportunities in the new unit to be created at ZF,” says Karl Tragl, Chairman of the Executive Board of Bosch Rexroth. He adds that Bosch Rexroth has successfully advanced the business in recent years. “We have specifically broadened our product range with the development of the new wind turbine gearboxes for the weak wind segment,” says Tragl. In future, Bosch Rexroth will focus more intensively on the core business with industrial and mobile applications.
“We are looking forward to working together with experienced staff with more than 30 years of development and production know-how for wind turbine gearboxes and even over half a century of expertise in industrial gears,” explains Wilhelm Rehm, responsible for Corporate Materials Management and Industrial Technology on the ZF Board of Management. “We take account of this by making Witten the headquarters of our new Industrial Drives business unit.”
The two companies have agreed not to disclose the purchase price. The takeover is subject to approval by the antitrust authorities.
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www.zf.com
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