ZF Friedrichshafen, Germany’s third largest automotive supplier and among the top ten worldwide, has confirmed reports that it is in the early stages of discussions to sell its rubber and plastics (R&P) unit. ZF says it has been approached by a company that has shown high interest in acquiring the unit with a local German newspaper Neue Osnabrücker Zeitung (NOZ) revealing that the prospective buyer is a Chinese railway products company Zhuzhou Times New Material Technology.
In a statement released ZF says “discussions are still at an early stage. Nevertheless, ZF has decided to inform the employee representatives at the locations and the workforce of the business unit about the possible prospects. In doing so, ZF wants to provide them with an opportunity to contribute their vital interest to the negotiations with the interested party. ZF envisages striking a possibly positive business deal at the earliest in some weeks.”
ZF’s rubber and plastics unit employs some 3,400 staff globally and had sales of EUR718 million last year.