ITALY: Brembo to plough US$151m into US and Brazil
Brembo says it will make a total investment of EUR115m (US$151m) to expand the Homer industrial hub in Detroit, while also increasing production at the current plant in São Paulo, Brazil, from this year to 2015.
In the US, investment will total EUR83m, with the expansion necessary following the acquisition of new businesses and further involvement with North American customers, such as Chrysler, General Motors and Ford.
The initiative is expected to enable the subsidiary Brembo North America to double its sales from EUR178.5m for 2012, to around EUR350m for 2015.
In Brazil, EUR32m will be used to move the current plant from São Paulo to Santo Antonio de Posse, north of São Paulo, where a larger and more modern site will be put into operation.
The Brembo do Brazil subsidiary is expected to increase its sales by around 100% in the three-year period, from EUR66.6m for 2012 to around EUR130m for 2015.
"Brembo's investments in the Americas support two important areas that continue to perform dynamically and show positive market trends and that are marked by a gradual increase in demand for our products," said Brembo Group chairman, Alberto Bombassei.
"The company must continue down the path of internationalisation and, in parallel to these measures, it will continue to plan investments not only in expanding markets such as China, India and Eastern Europe, but also in Italy where, although the automotive crisis unfortunately is not showing clear signs of a reversal of the current recessionary trend, we have continued to invest, from 2008 to the present, at a rate of over EUR40m a year."