3rd
December 2009 -
Brembo to Establish Manufacturing Hub in China
Brembo signs agreement to establish a new
manufacturing hub for brake systems for passenger cars and commercial
vehicles in China:
| ▫ |
Foundry machinery of €8.5
million will be purchased; |
| ▫ |
The project calls for
additional investments of €40 million over 4 years;
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| ▫ |
The goal is to triple output
by 2013. |
Today, Brembo S.p.A. and Donghua
Automotive Industrial Co., a member of the Saic Group — China’s leading
manufacturer of cars and commercial vehicles — signed a preliminary
agreement for the purchase of foundry plants and equipments, at a price
of € 8,5 million, in order to establish a new integrated Brembo
manufacturing hub in Nanjing, including a foundry and a machining
facility for brake callipers and discs for use in cars and commercial
vehicles.
For this project, Brembo S.p.A. has
formed a new fully owned subsidiary, Brembo Foundry Nanjing Co. Ltd.,
with share capital of RMB 100 million (equivalent to approximately €10
million).
The agreement will enter into effect on
15 January 2010, once final approval has been given by the competent
Chinese authorities.
The new manufacturing hub will become
operational in early 2010 and will include new machining facilities with
the aim of developing an integrated industrial system capable of
offering the Chinese market high-quality, high-technology brake systems.
In order to keep pace with the constant
growth of the Chinese automotive market, which is expected to continue
in the coming years, Brembo will further invest for the foundry about
€20 million in the period 2011-2014,
In the same period the JV Brembo Nanjing
Brake System (70% owned by the Brembo Group and 30% by Donghua) will
invest additional € 20 million to expand current production capacity.
The JV Brembo Nanjing Brake System
currently employs a staff of approximately 300 and is forecast to
achieve €22 million in revenue and a positive EBIT in 2009.
Brembo expects to triple its output of
brake discs and callipers by 2013.
The JV’s main customers are BMW, Daimler,
VW, Volvo, Iveco, MG, and Mitsubishi (the latter beginning in 2010).
Donghua Automotive Industrial Co., Ltd.
is a large enterprise specialized in the key business areas of auto
parts and service & trade. Donghua auto parts products covers forging
part, casting part, tooling and equipment, chassis related systems
(transmission system, powertrain, brake system, steering system,
suspension system etc.), electric meters and trimming. Donghua service
and trade business covers logistics, raw & ancillary material trade,
import and export trade, real estate development etc.
Brembo SpA is the world leader and
acknowledged innovator of the brake disc technology for automotive
vehicles. Brembo supplies high performance brake systems for the most
important manufacturers of cars, commercial vehicles and motorbikes
worldwide, as well as clutches, seats, seat belts and other components
for racing only. Moreover, Brembo is also a leader in the racing sector
and has won more than 200 championships. Today the company operates in
14 countries of 3 continents, with 34 production and business sites, and
a pool of about 5,400 employees (as of 30/09/2009), 8% of whom are
engineers and product specialists active in the R&D. 2008 turnover is €
1.060 million. Brembo is the owner of the Brembo, Breco, Marchesini,
Sabelt brands and operates through AP Racing brand.
Source:
Brembo
Press Release