Shandong BRGP Friction Technology slated to start operations in early 2023 in Jinan, the capital of Shandong province in Eastern China
27 Jul 2022 | 1982 Views | By Autocar Pro News Desk
Brembo and Gold Phoenix have signed a 50/50 joint venture agreement establishing a new company, Shandong BRGP Friction Technology Co to create the first large scale Brembo manufacturing facility fully dedicated to produce innovative aftermarket pads.
The JV, called Shandong BRGP Friction Technology Co, is expected to start operations ...
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Brembo and Gold Phoenix have signed a 50/50 joint venture agreement establishing a new company, Shandong BRGP Friction Technology Co to create the first large scale Brembo manufacturing facility fully dedicated to produce innovative aftermarket pads.
The JV, called Shandong BRGP Friction Technology Co, is expected to start operations in early 2023 in Jinan, the capital of Shandong province in Eastern China. The overall investment from both companies is approximately 35 million euros (Rs 286 crore) over the next 3 years.
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 JV will cater to passenger cars, light commercial vehicles and heavy duty trucks, leveraging on new opportunities arising from a growing market. In 2020 there were approximately more than 1.23 billion vehicles in operation globally. This number is expected to grow by more than 10% within 2026 and by more than 18% within 2030 reaching approximately 1.46 billion, according to Brembo’s projections based on IHS Markit’s data. The share of older cars is also expected to increase, generating a substantial effect on the aftermarket segment, as older vehicles are more likely to need maintenance and replacement parts.
“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” – said Roberto Caravati, Brembo Aftermarket Chief Operating Officer.
“We are very pleased to form this partnership with Brembo, a company with unparalleled experience in braking systems on the global scale,” said Peng Sun, CEO of Gold Phoenix.