ZF Wind Power Invests €50 Million to Expand Coimbatore Facility

ZF Wind Power Coimbatore, a division of global auto parts supplier ZF, is investing €50 million to boost the production capacity of its Coimbatore facility from 9 GW to 12 GW. This expansion will increase ZF's global wind gearbox production capacity to 25 GW. To date, ZF has invested €230 million in its Coimbatore operations.

The expansion, driven by growing demand in both domestic and international markets due to ambitious renewable energy targets, will create 225 new jobs. The Coimbatore plant, which currently employs over 1,360 people (including 90 in R&D), is ZF's largest gearbox facility outside China and has produced 50 GW worth of gearboxes, surpassing India's total installed wind turbine capacity.

Felix Henseler, CEO of ZF Wind Power, noted the surge in demand, particularly in India, where the government is eager to expand wind energy capacity. Although the plant primarily serves export markets, especially the US, the growing demand there is also driving the expansion. The increased capacity is expected to be operational by the end of next year, with plans to supply 12 GW annually starting in 2024.

ZF is also preparing for onshore and offshore wind projects in India, leveraging its experience from Europe and North America. Peter Laier, a ZF Group board member, mentioned that the company could potentially reach a cumulative supply of 100 GW by 2029, with the Indian government’s investment in wind energy strengthening ZF’s commitment to further capacity expansion.

The facility is gearing up to produce next-generation gearboxes, with the range extending from 1.5 to 6 MW. This year alone, ZF has installed 2.5 GW and expects to reach 4-5 GW by March. The Coimbatore complex also serves as a global service center for gearboxes up to 3 MW, with the capacity to service about 700 gearboxes annually.

ZF is working closely with suppliers of castings, foundries, steel, and bearings in India. While India has strong capabilities in steel and bearings, foundries are being encouraged to enhance their technology to meet ZF's quality standards. However, challenges like higher energy costs and a shortage of scrap metal increase production costs in India compared to China. ZF is in discussions with the Indian government to seek support in reducing these costs to remain globally competitive.

HBL