Sunday, July 21, 2024

Italian manufacturer Brembo upgrades Nuevo León plant for US $207M

Italian brake manufacturer Brembo has completed its US $207 million expansion of its manufacturing plant in Escobedo, Nuevo León.

The 322,917-square-foot project, which began in 2021, is expected to create 500 new jobs, on top of the 1,100 people already employed there. The investment doubled the factory’s size, which will allow it to increase output from 3 million to 6 million brake calipers per year, Brembo officials said. The Escobedo plant is now Brembo’s largest manufacturing site worldwide. 

The Escobedo plant is now Brembo’s largest production facility globally. The US $207 million investment is yet another major victory for the northern state of Nuevo León. (Brembo)

“As Brembo continues to advance the world of brakes, advanced facilities like this one help bring our vision to life,” Brembo North America President Stéphane Rolland said during the inauguration ceremony. “This represents another step in our mission to be a solutions provider and serve our customers globally.”

“For us, Nuevo León is a great place to do business. We have great skills, talented people that allow us to grow with Brembo,” he added.

The Escobedo site opened in 2016, and is one of three Brembo facilities in the northern state, alongside a cast-iron foundry and a disc-machining center, both located in the nearby city of Apodaca. 

Nuevo León has seen a wave of foreign manufacturers relocate to the state — particularly those in the automotive industry — as nearshoring in Mexico becomes an increasingly attractive proposition for companies attempting to reach the North American markets at an affordable price. Seventy-two percent of nearshoring foreign investment in Mexico in 2023 have been in the state of Nuevo León, as the state takes advantage of relative peace and security and a highly-educated workforce in the region around the city of Monterrey. In January alone, nearshoring investments announced totaled US $2.5 billion.

Stéphane Rolland, Brembo, inaugurating the factory
Stéphane Rolland, Brembo president for North America, said that the factory represented a step in cementing his company as a global provider. (Brembo)

The Italian company has had a presence in Mexico since beginning a joint venture in Puebla in 1996 and acquiring Hayes-Lemmerz in 2007. The Brembo group saw profits of 961.9 million euros during the first quarter of 2023.

Italian ambassador to Mexico Luiggi da Chiarra said that he hoped the new investment would increase ties between the two countries further. 

Mexico is Italy’s top trading partner in Latin America, with around US $8.5 billion of goods traded between the two nations.

With reporting by Forbes, El Financiero and Mexico Business

Have something to say? Paid Subscribers get all access to make & read comments.
Passengers wait in the crowded Cancún airport during the global Microsoft IT meltdown in Mexico.

Airport chaos and border bedlam: How the Microsoft IT meltdown is affecting Mexico

The IT outage that swamped Microsoft Windows computers around the world hit just as hard in Mexico, frustrating travelers of all stripes.
A man in a rain jacket points down at a channelized river below a bridge, full after recent rains.

Drought relents and reservoirs start to recover across rainy Mexico

As of July 15, the area of the country suffering from drought was down to almost 50%.
AMLOAMLO and Donald Trump walk down a red carpet in an elegant hallway. and Donald Trump walk down a red carpet in a long corridor.

In response to Trump speech, AMLO plans to send his ‘friend Donald’ a letter

"I think they're not informing him well about the migration issue and also about the importance of maintaining economic integration between the United States, Mexico and Canada," AMLO said Friday morning.