Brembo SpA and Donghua Automotive Industrial have cosigned a preliminary agreement for the purchase of foundry plants and equipment, at a price of 8.5 million euro ($12.8 million) “in order to establish a new integrated Brembo manufacturing hub in Nanjing,” according to the company.
The Chinese hub will include a foundry and a machining facility for brake calipers and discs for use in cars and commercial vehicles.
The agreement will enter into effect on Jan. 15, 2010, once final approval has been given by Chinese authorities.
For this project, Brembo has formed a fully-owned subsidiary, Brembo Foundry Nanjing Co. Ltd., with share capital of close to $15 million. Brembo says it will invest another $30 million in the foundry from 2011-2014.
Brembo and Donghua also will invest $30 million in their Brembo Nanjing Brake System joint venture plant (Brembo owns 70% of the joint venture). The money will be used to expand production capacity.
