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October 27, 2016 02:00 AM

Brembo building brake foundry in Mexico

Special to Tire Business
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    (Tire Business photos by Stephen Downer)
    A Corvette is shown at Brembo S.p.A.'s new aluminum brake caliper plant in Escobedo, Mexico.

    By Stephen Downer, Special to Tire Business

    ESCOBEDO, Mexico — Brembo S.p.A. is to start building a $93 million cast iron brake disc foundry in northern Mexico within weeks, its chairman said Oct. 20.

    Brembo Chairman Alberto Bombassei said the foundry will stand next to a $36 million aluminum brake caliper plant that he officially opened earlier in October.

    Daniel Sandberg (left), president and CEO of Brembo North America Inc.; Italian Foreign Relations Under-Secretary Benedetto Della Vedova; Brembo S.p.A. Chairman Alberto Bombassei; Escobedo Mayor Carla Luz; and Economy Under-Secretary Rogelio Garza appear at the ceremony announcing Brembo's new brake disc foundry, to be built in northern Mexico.

    The Bergamo, Italy-based company said the 269,000-sq.-ft. foundry will have a capacity of about 100,000 tons a year, employ 200 and be in operation by year-end 2017.

    The ultra-modern caliper plant in Escobedo covers 337,000 square feet. It will have an installed production capacity of 2 million calipers a year and eventually employ 500, Brembo said.

    Brembo S.p.A. Chairman Alberto Bombassei discusses the company's new Mexico aluminum caliper plant.

    The plan is to supply light vehicle assembly plants in Mexico operated primarily by U.S., European and Asian original equipment manufacturers (OEM), according to the company.

    However, one of several Brembo spokespersons who addressed reporters said the facility is already making calipers for Tesla Motors Inc., which does not make cars in Mexico.

    Aluminum calipers are on display in the lobby of Brembo's new plant in Escobedo, Mexico.

    “Our goal is to localize as much production as possible,” Daniel Sandberg, president and CEO, Brembo North America Inc., told reporters, explaining Brembo's strategy of manufacturing as close as possible to its OEM customers' assembly operations.

    He expected the new plant to be “swamped” with work. Brembo said the facility will add $100 million in sales to the company's bottom line.

    José Miguel León Grappin is director of Brembo's new aluminum caliper plant in Escobedo, Mexico.

    According to Mr. Sandberg, North America accounts for 35 percent of the company's revenue.

    Asked at a post-opening ceremony news conference whether Brembo plans to invest similar amounts in its other North American plants — in Homer, Michigan, and Apodaca, northern Mexico — Mr. Sandberg said:

    Brembo's new cast iron brake disc foundry measures 269,000 square feet.

    “Over the past seven or eight years, we've spent upwards of $117 million in Homer and have also spent a lot of money in Apodaca.”

    (Brembo S.p.A. photo

    Alberto Bombassei

    Brembo acquired the Homer and Apodaca plants in 2007 when it purchased Hayes Lemmerz International Inc.'s brake components operations. Brembo has a 16- to 18-percent share of the global market for brake rotors, CEO Andrea Abbati said.

    The municipality of Escobedo is part of the Greater Monterrey Metropolitan Area. The Apodaca plant employs 250.

    Stephen Downer is a Mexico-based freelance writer who covers that country and Latin America for Tire Business and its Latin America e-newsletter. Material in this story about Michelin's and Pirelli's plant expansions in Mexico was contributed from Tire Business staff reports.

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