WildBillyT
12-02-2009, 02:26 PM
Brembo Signs Agreement to Establish New Manufacturing Hub for Brake Systems in China
December 2, 2009
By aftermarketNews staff
STEZZANO, Italy -- Brembo S.p.A. and Donghua Automotive Industrial Co., a member of the SAIC Group -- China's leading manufacturer of cars and commercial vehicles -- have signed a preliminary agreement for the purchase of foundry plants and equipments, 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. The purchase is valued at EUR 8.5 million (approximately $13 million).
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 $15 million).
The agreement will enter into effect on Jan. 15, 2010, following approval from 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 says it will further invest for the foundry about EUR 20 million (approx. $30 million) in the period 2011 through 2014. In the same period, the JV Brembo Nanjing Brake System (70 percent owned by the Brembo Group and 30 percent by Donghua) will invest additional EUR 20 million ($30 million) to expand current production capacity.
The JV Brembo Nanjing Brake System currently employs a staff of approximately 300 and is forecast to achieve EUR 22 million (approx. $33 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).
I give it 2 years before the name is tarnished.
December 2, 2009
By aftermarketNews staff
STEZZANO, Italy -- Brembo S.p.A. and Donghua Automotive Industrial Co., a member of the SAIC Group -- China's leading manufacturer of cars and commercial vehicles -- have signed a preliminary agreement for the purchase of foundry plants and equipments, 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. The purchase is valued at EUR 8.5 million (approximately $13 million).
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 $15 million).
The agreement will enter into effect on Jan. 15, 2010, following approval from 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 says it will further invest for the foundry about EUR 20 million (approx. $30 million) in the period 2011 through 2014. In the same period, the JV Brembo Nanjing Brake System (70 percent owned by the Brembo Group and 30 percent by Donghua) will invest additional EUR 20 million ($30 million) to expand current production capacity.
The JV Brembo Nanjing Brake System currently employs a staff of approximately 300 and is forecast to achieve EUR 22 million (approx. $33 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).
I give it 2 years before the name is tarnished.