Brembo Celebrates a New Brake Plant in Escobedo, Mexico

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Brembo President Alberto Bombassei inaugurated today the company’s new plant in Escobedo, in the State of Nuevo Léon, Mexico. The ceremony was attended by several Mexican and Italian dignitaries, as well as government representatives, including the Italian Secretary of State for Foreign Affairs – Benedetto Della Vedova. Nuevo Léon makes 60% of the auto parts used in Mexico, where the northern state is its industrial heart.

Once fully operational, the disc brake plant will be capable of making two million aluminum calipers annually. The plant, covering 377,000 square feet, will add ~$100 million a year in estimated sales. It was built during what’s said to be a record time of one year, attributed by Brembo to the know-how it acquired from the construction of new production facilities on three different continents. About 500 new jobs will be created.

A tour of Escobed0 by AutoInformed showed a highly automated, clean, state-of-the-art manufacturing facility, in a sector that once was a dirty blacksmithing business not that long ago.

Brembo is the 7th largest auto parts maker, and the fourth largest exporter globally. It holds ~15% global market share in rotors for the 80 million vehicles produced annually. Brembo invested $36 million in the plant. Government incentives were said to be $59 million.

During the ceremony, Bombassei also announced that the company would start construction of a new foundry for the production of cast iron discs, aka brake rotors. That plant will be adjacent to Escobedo inaugurated today. Work on the new foundry will begin in a few weeks, and will be operational by the end of 2017. With an investment of $93 million, the new facility will have a melting capacity of approximately 100,000 tons per year and will cover an area of 269,000 square feet. Brembo estimates that the new foundry will employ approximately 200 people.

The production of the new plant will be dedicated to American, European and Asian original equipment manufacturers (OEMs)  with manufacturing facilities operating in Mexico. NAFTA and its negative effects on U.S. manufacturing jobs is part of the contentious U.S. presidential debate this year, of course. (Ford Invests $1.6 Billion in Mexico. NAFTA Sucking Sound of Lost U.S. Jobs Continues During Fierce Presidential Race)

Source: Brembo