Brembo SpA, which manufactures disc brakes for the automotive industry, has announced plans to invest $100 million to build a cast iron foundry near its Homer, Michigan, facility. The company says the new foundry is part of its vertical integration strategy for its U.S. production capacity.
Brembo, headquartered in Stezzano, Italy, has operations throughout the world, including three facilities in the United States.
Construction on the new foundry is expected to begin in 2015 and to be completed in 2017. The facility will have the capacity to produce 80,000 tons of brake disc castings, Brembo says.
“Following the opening of our Plymouth headquarters and R&D center in 2010 and two months away from the completion of the recent Homer, Michigan, plant expansion, we are glad to announce this significant investment approved today, which will reinforce the link between Brembo and the United States, one of the most important automotive markets in the world”, says Alberto Bombassei, Brembo SpA chairman.
“The increasing number of global platforms being built by vehicle manufacturers prompts us to seek the best possible integration between the different stages of the value chain, replicating the integrated production model that we have adopted for some time now in our facilities in Italy and recently in Poland and China,” Bombassei adds.
Brembo says the new foundry reinforces its commitment to the North American market, which has grown substantially during the past five years and is expected to become Brembo’s largest geographic market by the end of 2014.