Last year, ZF Group, the parent company of ZF Steering Systems, said that it was moving its shock absorber operations - ZF Sachs - to its plant in Guadalajara, Mexico.
That move will eliminate about 220 jobs. Those workers will have the opportunity to apply for the 175 jobs opening at the steering systems operation, spokesman Frank Buscemi said.
“Longer term, there is a possibility, to grow jobs in the region, but we don’t know yet,” Buscemi said.
The company will receive more than $2 million in tax credits from the commonwealth of Kentucky for the expansion project.
The Florence facility will become ZF Group’s only North American plan to manufacture steering systems.
“Everyone is streamlining these days, and this move will let us do that,” Buscemi said.
Meanwhile, as the result of a several new contracts, the company said it would begin producing electric power steering systems for the first time in North America at the Florence plant. The systems have been popular in Germany, where ZF Group currently manufactures the product.
“It’s a system that improves fuel economy in cars, because of it has fewer parts and reduces the weight,” Buscemi said. “The technology is ideal for hybrid vehicles, and is very versatile.”
The newer system, which replaces the pumps and valves of standard steering systems with an electric motor, is currently used in cars such as the Volkswagen Jetta and the BMW Z4, Buscemi said.
ZF Steering plans to invest more than $30 million in equipment and upgrades at the Florence facility.
ZF Steering has relocated its 365 employees from Hebron to Florence. ZF Group’s shock absorber operations are expected to be completely moved to Mexico by the end of 2009, according to the company.
For MORE NEWS BRIEFS, click here.
