Partnership combines XCMG's agricultural equipment expertise with ZF's powershift transmission technology
FRIEDRICHSHAFEN, Germany, June 5, 2026 -- Xuzhou Construction Machinery Group (XCMG Group) and ZF Friedrichshafen AG (ZF) signed a joint venture agreement in Friedrichshafen, Germany on June 2. The partnership aims to provide locally tailored solutions for China's agricultural machinery market and accelerate agricultural technology innovation in China.
Under the agreement, the parties will establish ZF (Xuzhou) Machinery Co., Ltd., headquartered in the Xuzhou Economic and Technological Development Zone (XETDZ), Jiangsu Province. This agreement marks a significant milestone in strengthening the partnership between the two companies and expanding their collaboration on agricultural equipment technology.
"China's agricultural machinery sector is shifting toward larger, more advanced, and more intelligent equipment, while powershift transmission technology for tractors and other agricultural equipment is entering a critical growth phase," said Yang Dongsheng, chairman of XCMG Group and XCMG Machinery.
"We will pursue this collaboration with an open and pragmatic approach, building on XCMG's strengths in high-end agricultural machinery and ZF's expertise in powershift technology. Together with ZF, we aim to develop globally competitive solutions for the high-end agricultural machinery market and strengthen China's domestic agricultural equipment industry," Yang added.
ZF (Xuzhou) will combine global technology standards with solutions tailored to the Chinese market and focus on producing advanced powershift transmission systems for agricultural applications. Both parties plan to develop new components and integrated system solutions that help modernize China's agricultural machinery industry while strengthening its competitiveness in international markets.
Commenting on the agreement, Andreas Moser, a member of ZF's Board of Management, highlighted the strategic importance of China to ZF's long-term growth plans.
He noted that ZF's four-and-a-half decades of operations in China reflect both its long-standing commitment to the market and its investment in local innovation. The new venture, he said, will expand localized production of advanced powershift transmission technologies and support the development of the next generation of high-performance agricultural machinery.
ZF is a global technology company providing mobility products and systems for passenger cars, commercial vehicles, and industrial applications. It focuses on improving efficiency, reducing emissions, enhancing environmental performance, and enhancing vehicle safety. Beyond automotive applications, ZF serves construction equipment, agricultural machinery, wind energy, marine propulsion, and rail industries through its driveline, propulsion, and testing technologies.
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