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Knorr-Bremse do Brasil is investing $US5 million to expand its factory in Santo Amaro, São Paulo state, to produce truck disc brakes. The factory already makes drum brakes, cylinders and valves.

Production will start in January 2002 with capacity to make 50,000 disc brakes a year.

Knorr-Bremse will be the first company to produce truck disc brakes in Brazil.

"When we started making truck disc brakes in 1995 we planned to produce them only in Germany but the potential of the Brazilian market led us to change our plans", said Knorr-Bremse do Brasil president Rodmar Cardinali.

The Brazilian-made truck disc brakes will initially have 45 percent local content but the company expects this to increase.

"In two years we will have 80 percent Brazilian content," Cardinali added.

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