Agreement to start a brake pad manufacturing plant in eastern China. Investment of 35 million in three years | Brembo, the interview with president Tiraboschi
Brembo will produce brake pads in China. The Italian group has signed an equal joint-venture agreement with Gold Phoenix to create the first Brembo production plant completely dedicated to the large-scale production of innovative brake pads for the aftermarket market. The new Shandong BRGP Friction Technology company will be operational from early 2023 in Jinan, the capital of Shandong province in eastern China. The transaction envisages an overall investment of approximately € 35 million by Brembo and Gold Phoenix for the next three years.
The goal of the joint venture
The joint venture will serve three main segments, cars, light and heavy commercial vehicles, to seize the new opportunities that will arise from the growth of the reference market. In 2020, there were more than 1.23 billion vehicles in circulation globally, explains a note from the company. According to Brembo 's estimates based on IHS Markit data, this number will grow by over 10% by 2026 and by over 18% by 2030, reaching approximately 1.46 billion units. The fleet is also set to age, generating a significant impact for the aftermarket sector as these cars need more maintenance and replacement parts.
Who is Gold Phoenix
Shandong Gold Phoenix is a Chinese company, listed on the Shanghai Stock Exchange since April 6, 2017, specializing in the design, testing, production and marketing, among other things, of brake systems, pads and friction material for original equipment and aftermarket, for applications on passenger cars, motorcycles, commercial and high-performance vehicles and trains. Today the company has an offer of over 6,000 brake pads and shoes and more than 4,300 brake discs. This product range covers almost all applications required by the global market. Revenue in 2021 was $ 218.5 million.
Brembo 's statements
“We have entered into a long-term and strategic partnership with a leading Group in the production of high-tech braking components. Our goal is the vertical integration of our solutions, ”said Roberto Caravati, Brembo Aftermarket Chief Operating Officer. “Thanks to this joint venture, Brembo consolidates its positioning in the aftermarket sector, strengthening the development of brake pads in line with the new mission of being a solution provider. All this for the benefit of our partners along the supply chain and car enthusiasts who choose to rely on our brand for maximum quality and performance. " (All rights reserved)
Source: 25/07/2022 by Francesco Berto Lino
Commenti