MEX - Brembo Inaugurates New Brake Plant and Announces a Second Iron Foundry in Escobedo, Mexico

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Completed in record time, with an investment of $36 million (€32 million), the new plant built for the production of aluminum calipers strengthens Brembo's presence in North America.

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 authorities, including the governor of Nuevo Léon, Jaime Rodríguez Calderón, the Minister xxx, and the Secretary of State for Foreign Affairs Benedetto Della Vedova.

Today's plant opening represents a new and significant phase for Brembo's presence in North America, where the company began operating in 1996 with the establishment of a joint-venture in Puebla, Mexico and then continued in 2007 with the acquisition of Hayes-Lemmerz's brake component operations, which included plants in Michigan and Apodaca, Mexico.

The new manufacturing site in Escobedo is a real turning point for Brembo's operations globally. Following its global strategy of localizing products and process innovation, service and cooperation close to its customers, Brembo continues to distinguish itself from other suppliers. Escobedo is one of the company's more modern and cutting edge aluminum caliper plants. The facility features state-of-the-art manufacturing processes that combine high efficiency with the latest technically integrated solutions.

The foundry will have a melting capacity of approximately 15 thousand tons per year and the site, once fully operational, will be capable of making two million aluminum calipers per year. The plant, which covers an area of 377,000 square feet (35,000 square meters), will lead the Group to sales of approximately $112 million (€100 million) a year. Built in record time, in less than a year, thanks to the know-how acquired by Brembo from the construction of new production facilities on three different continents, the new plant will have a positive impact on the level of employment in the area, creating about 500 new jobs.

Second foundry announced - During the ceremony, Alberto Bombassei also announced that the company will start construction of a second new foundry for the production of cast iron discs. That plant will be adjacent to the plant 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 $95 million (€85 million), the new facility will have a melting capacity of approximately 70,000 tons per year and will cover an area of 269,000 square feet (25,000 square meters). 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 (OEM) present in Mexico with manufacturing facilities.

This new production facility, along with the one inaugurated today, confirms the integration strategy that has been pursued by the group which increases its geographic presence in close proximity to its major customers.