STEZZANO, Italy — Brembo S.p.A. is investing $39 million to build a new aluminum caliper production plant in Mexico.
The plant will be built in Escobedo, Nuevo Leon, just outside of Monterrey, Mexico, and will include a new aluminum foundry and machining facility capable of producing 2 million calipers per year for the company's customers in the NAFTA region, according to Brembo. The 334,000-sq.-ft. factory is expected to begin initial production in 2016 and be fully operational by year-end 2018. At that point the firm said the facility is expected to generate an annual turnover of $120 million.
The facility's foundry will have a melting capacity of 14,000 tons and the machining facility will be capable of producing 2 million aluminum calipers per year.
Once the plant is fully operational, Brembo expects to create about 500 new jobs there.
Production from the plant will be destined for European, Asian and American original equipment manufacturers currently manufacturing or planning future manufacturing in Mexico, as well as those OEM's purchasing Brembo's products in the U.S.
Brembo said the investment is consistent with its continued growth in North America, which has included expansions of its manufacturing operations in Homer, Mich., as well as the recent announcement of a new castiron foundry, also in Michigan, that is scheduled to be completed by 2017.
In 2014, the NAFTA region — Canada, U.S. and 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, according to the firm. “For this reason, the group continues to expand in the continent in not only the U.S.A., but also in Mexico, where the automotive market continues to grow,” the company said.
“With the opening of the new plant in Mexico, Brembo confirms its strong determination to continue growth in North America,” said Alberto Bombassei, Brembo Group chairman. “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.”
Brembo supplies high-performance brake systems for cars, commercial vehicles and motorbikes worldwide, as well as clutches, seats, seat belts and other components for racing. The company owns the Brembo, Breco, AP, Bybre, Marchesini and Sabelt brands and also operates through the AP Racing brand.