Brembo Builds Aluminum Caliper Production Plant in Mexico
The new $39 million foundry and machining facilities will generate $120 million in North American business.
Posted: December 3, 2014
Brembo SpA (Stezzano, Italy) is building a foundry and a new production plant for aluminum 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 company’s total investment in the facility from 2015 through 2017 will be $39 million (32 million euro).
The new aluminum foundry and machining facility will be capable of producing two million calipers per year that are destined for customers in the NAFTA region. The facility will be 334,000 sq ft (31,500 sq m) and, when fully operational, will generate an annual turnover of $120 million (€100 million).
The foundry will have a melting capacity of 14,000 tons. Once fully operational, the overall campus will create approximately 500 new jobs. The 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 OEMs purchasing Brembo products in the U.S.
This investment is consistent with the company’s continued growth in North America, which has included expansions of its manufacturing operations in Homer, MI, as well as the recent announcement of a new cast-iron foundry, also in Michigan, which 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. For this reason, the group continues to expand in the continent in not only the U.S., but also in Mexico, where the automotive market continues to grow.
“With the opening of the new plant in Mexico, we confirm our strong determination to continue growth in North America,” stated the group’s chairman, Alberto Bombassei. “The demand for aluminum calipers, expanding quickly outside of Europe, opens up opportunities for further development in North America for us because we have 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.”
Subscribe to learn the latest in manufacturing.
