The plant will include a new aluminum foundry and machining facility capable of producing two million calipers per year destined forthe company's customers in the NAFTA region. The facility will be 334,000 square feet (31,500 square meters) and when fully operational will generate an annual turnover of $120 million (€100 million).
Brembo will build a foundry and a new production plant for aluminum calipers in Escobedo, Nuevo Leon, just outside of Monterrey, Mexico. The plant is expected to commence initial production in 2016 and be fully operational by the end of 2018. Brembo’s total investment in the facility from 2015 through 2017 will be $39 million (32 million euro).
The foundry will have a melting capacity of 14,000 tons and the machining facility will be capable of producing two million aluminum calipers per year. Once fully operational, the plant will cover an area of 334,000 square feet (31,500 square meters), create approximately 500 new jobs and bring $120 million (€100 million) of turnover per year to the group.
The production from the plant will be destined for European, Asian and American original equipment manufacturers (OEM’s) currently manufacturing or planning future manufacturing in Mexico, as well as those OEM’s purchasing Brembo’s products in the U.S. This investment is consistent with Brembo’s continued growth in North America, which has included expansions of its manufacturing operations in Homer, Michigan as well as the recent announcement of a new castiron foundry, also in Michigan, which is scheduled to be completed by 2017.
In 2014, the NAFTA region (Canada, USA, Mexico) became Brembo's top market, with sales for the first nine months of the year increasing nearly 25 percent over the same period of 2013. For this reason, the group continues to expand in the continent in not only the USA, but also in Mexico, where the automotive market continues to grow.
"With the opening of the new plant in Mexico, Brembo confirms its strong determination to continue growth in North America," stated the Group's Chairman, Alberto Bombassei. "The demand for aluminum calipers, expanding quickly outside of Europe, opens up opportunities for further development in North America for Brembo, which has always been a leader in this technology. We can take advantage of this opportunity only if we invest in production capacity close to our customers in the local market".
About Brembo SpA
Brembo SpA is the world leader and acknowledged innovator of disc brake 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. Brembo is also a leader in the racing sector and has won more than 300 championships. Today the company operates in 16 countries on 3 continents, with 22 production and business sites, and a pool of more than 7.700 employees, about 10% of whom are engineers and product specialists active in the R&D. 2013 turnover is € 1.566,1 million (31.12.2013). Brembo is the owner of the Brembo, Breco, AP, Bybre, Marchesini, and Sabelt brands and operates through the AP Racing brand.
For information
Investor Relations
Matteo Tiraboschi
Tel. +39 035 605 2899
e-mail: ir@brembo.it
www.brembo.com
Communications and Institutional Relations Director
Thanai Bernardini
Tel. +39 035 605 2277 - Mobile. +39 335 7245418
e-mail: press@brembo.it
Source: Brembo.com
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