Brembo, Gold Phoenix JV to establish large-scale brake pad factory

MANILA: Brembo and Gold Phoenix have affirmed a 50/50 joint venture, which will create a new company called Shandong BRGP Friction Technology Co., Ltd. to build the first large-scale Brembo manufacturing plant dedicated exclusively to the production of cutting-edge aftermarket pads.

The newly formed company will bring together Brembo’s leadership in braking systems with Gold Phoenix’s high-tech friction solutions and it will focus on superior product quality and innovation, especially in terms of performance, comfort, durability and sustainability, with the aim of anticipating the challenges of electrification and autonomous driving.

The joint venture will cover the passenger car, light commercial vehicle, and heavy-duty truck segments, embracing new opportunities presented by a growing market.

In fact, there were over 1.23 billion vehicles on the road worldwide in 2020. Brembo's projections based on IHS Markit data anticipate that this number will increase by more than 10% by 2026 and by more than 18% by 2030, hitting around 1.46 billion. Because older vehicles are more likely to require maintenance and replacement parts, the share of older vehicles is also anticipated to rise. This will have a significant impact on the aftermarket segment.

In a statement, Brembo Aftermarket Chief Operating Officer Roberto Caravati said, “We have entered into a strategic and long-term partnership with a leader in high-tech braking friction products to further improve the vertical integration of our solutions. With this joint venture, Brembo will enjoy an even stronger positioning in the aftermarket segment, seizing new opportunities thanks to a more effective development of pads, in line with our mission of being a solution provider. All this to the benefit of our partners across the value chain and all car enthusiasts who choose to rely on our brand for top quality and performance.”

“We are very pleased to form this partnership with Brembo, a company with unparalleled experience in braking systems on the global scale,” Gold Phoenix Chief Executive Officer Peng Sun stated. “By combining our industrial and technological expertise, together, we are committed to building a successful long-term enterprise. With a dedicated facility and team, the new company will be focused on product innovation, with the ultimate goal of delivering market-leading solutions to customers.”

Shandong BRGP Friction Technology Co., Ltd. is slated to begin operations in 2023 in Jinan, the capital of Shandong province in Eastern China. Over the next three years, both companies will invest a total of around €35 million.

Photo from Brembo

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