Brembo is to invest $39 million (Rs 241 crore million) in a new aluminium caliper production plant in Mexico.
08 Dec 2014 | 5928 Views | By Autocar Professional Bureau
Brembo is to invest $39 million (Rs 241 crore million) in a new aluminium caliper production plant in Mexico. The plant will include a new aluminium foundry and machining facility capable of producing two million calipers per year destined for the company's customers in the NAFTA region. The facility will ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
Brembo is to invest $39 million (Rs 241 crore million) in a new aluminium caliper production plant in Mexico. The plant will include a new aluminium foundry and machining facility capable of producing two million calipers per year destined for the 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 (Rs 741 crore).
Brembo will build a foundry and a new production plant for aluminium 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.
The foundry will have a melting capacity of 14,000 tonnes and the machining facility will be capable of producing two million aluminium calipers per year. Once fully operational, the plant will cover an area of 334,000 square feet (31,500 square metres) and create approximately 500 new jobs.
The production from the plant will be destined for European, Asian and American original equipment manufacturers (OEMs) currently manufacturing or planning future manufacturing in Mexico, as well as those OEMs purchasing Brembo products in the US. 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. Therefore, 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 aluminium 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".