Germany based auto component major ZF Friedrichshafen AG has marked its entry into industrial gear market and further strengthened its position in wind turbine segment with the acquisition of Bosch Rexroth's large gearbox business.
Both the companies declined to reveal the price of the acquisition.
This will give ZF product line that would go into oil rigs, mine vehicles, tunnel drilling machines, or cableways.
"Strengthening our non-automotive segment is an important objective of our long-term corporate strategy," said ZF's CEO Dr. Stefan Sommer, 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."
ZF will take over the two production locations of Bosch Rexroth - one in Witten, Germany and the other one in Beijing, China. While German plant has 900 employees, China plant has 300 employees.
In 2014, Bosch Rexroth generated sales of approximately EUR 300 million with the large gearbox business. In the same year, ZF generated roughly twelve percent of its Group sales with the Industrial Technology division which includes company's off-road activities.
Bosch Rexroth broadened its product range with the development of the new wind turbine gearboxes for the weak wind segment. The company said that in future, Bosch Rexroth will focus more intensively on the core business with industrial and mobile applications.
"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.