Photo: Brembo
The Italian brake specialist Brembo has just closed a deal in China, gaining control over one of the country's main brake components manufacturers, Asimco Melian Braking Systems.
Bergamo-based Brembo forked out €86 million ($96.8 mil) to buy a 66% stake majority in the Chinese company. The remaining 34 percent will remain property of the public company Langfang Assets Operations. Judging by how the Chinese understand to make business, we can expect that they will not let go of the company completely, replicating the recipe that has been proved quite lucrative in other industrial sectors previously.
Alberto Bombassei, Brembo's President says that the Chinese industry has an impressive growth rate and the perspectives are even better if the quality improves and the technological expertise is constantly increased. Brembo's intentions are to be able to develop a global platform in China, and increasing the turnover in the coming years.
According to Brembo sources, the estimated €90 million ($101.3 mil) turnover for Asimco Melian Braking Systems in 2015 could be doubled in as little as two years, Executive Vice President, Matteo Tiraboschi says.
As for the quality of these products, it's hard to believe that Brembo will come up with lower-spec brake parts made by Asimco. Being regarded as the world's leader in brake components, Brembo is more likely to want to retain the prestige and avoid dishing out crappy products. After all, Apple's high-end gadgets are also made in China, isn't it?
Asimco Melian Braking Systems has its own foundry and manufactures brake discs
Asimco is a name with a strong presence in the automotive industry in China, supplying brake components to local auto businesses, most of them being joint operations of European and American manufacturers and Chinese companies.Alberto Bombassei, Brembo's President says that the Chinese industry has an impressive growth rate and the perspectives are even better if the quality improves and the technological expertise is constantly increased. Brembo's intentions are to be able to develop a global platform in China, and increasing the turnover in the coming years.
According to Brembo sources, the estimated €90 million ($101.3 mil) turnover for Asimco Melian Braking Systems in 2015 could be doubled in as little as two years, Executive Vice President, Matteo Tiraboschi says.
China represents around 5% of Brembo's sales, with this figure expected to grow to 10% of the consolidated revenues in 2017.
It is not known at this time whether Brembo's newly-bought Chinese facilities will only stick to automotive brake parts. We can expect that Brembo also consider extending the range of China-made products to the motorcycle segment.As for the quality of these products, it's hard to believe that Brembo will come up with lower-spec brake parts made by Asimco. Being regarded as the world's leader in brake components, Brembo is more likely to want to retain the prestige and avoid dishing out crappy products. After all, Apple's high-end gadgets are also made in China, isn't it?
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