Italian automotive brake maker Brembo SpA and DaimlerChrysler have agreed to set up a joint venture producing ceramic disc brakes by January, Dow Jones reported.

The joint venture, to be based in Italy, will initially focus on the production of ceramic brakes for high-end cars such as DaimlerChrysler's Mercedes SLR and Fiat's Ferrari Enzo, a Brembo spokesman told the news agency.

It will likely develop, produce and sell more components in the future, the two companies said in a statement cited by Dow Jones.