Brembo establishes new joint venture

Brembo establishes new joint venture

Brembo and Gold Phoenix have signed a 50/50 joint venture agreement (subject to compliance with local and antitrust regulations) creating a new company: Shandong BRGP Friction Technology Co., Ltd..

Their goal is to build the first large-scale Brembo production facility dedicated to producing innovative brake pads for the aftermarket.

The newly formed company will combine Brembo's leadership in braking systems with Gold Phoenix's high-tech friction lining solutions and focus on product quality and innovation, particularly in terms of performance, comfort, durability and sustainability. In this way, both partners want to address the requirements of electrification and autonomous driving at an early stage.

The joint venture will serve the passenger car, light commercial vehicle and heavy truck segments, leveraging new business opportunities arising from a growing market. In 2020, more than 1.23 billion vehicles were in operation worldwide - according to Brembo. That number is expected to rise by more than 10 percent by 2026 and more than 18 percent by 2030 to about 1.46 billion vehicles, Brembo forecasts based on IHS Markit data. The proportion of older vehicles is also expected to increase in the future, which will have a significant impact on the spare parts segment, as experience shows that older vehicles require more frequent maintenance and more spare parts - according to Brembo's assessment of the market.