Brembo, maxi-investment of half a billion on the plants

Brembo bets 500 million euros on growth and strengthens its production capacity. In fact, the group of the founder and honorary president Alberto Bombassei creates new plants in Mexico, China and Poland, built under the banner of digital transformation and sustainability. In Mexico, Brembo is completing the doubling of the production plant in Escobedo, in the state of Nuevo León, dedicated to brake calipers. Once fully operational, the plant will allow the company’s production capacity to double in the country. In China, Brembo will expand its Nanjing braking system plant to strengthen production capacity in the country. The investment also includes the renovation of the research and development center at the Nanjing site. It will be a cutting-edge center to support the development of new technologies required by the Chinese market. Works will begin in the second half of 2023 and the project is expected to be completed by the first half of 2025.

In Poland, Brembo has decided to start building a new cast iron foundry in Dąbrowa Górnicza. The investment will create the most innovative Brembo foundry on a global level, which will be equipped with cutting-edge technologies also with a view to sustainability. The start of the first casting of the foundry is expected in the first part of 2025. These projects add to the already announced acquisition of the Italcementi premises at the Kilometro Rosso in Stezzano, thanks to which Brembo will be able to expand its headquarters in Italy.

«We have launched three very important plants all over the world comments the executive chairman, Matteo Tiraboschi – Three different geographies, but three markets that see us grow significantly. There is currently no news on the acquisitions front. We are always attentive to what is happening on the market, but at the moment we have nothing concrete».

The global leader in braking systems is also growing in terms of turnover and profits. In fact, Brembo closed the first quarter of the year with revenues up by 12.2% to €961.9 million. Net profit rises to 76.8 million (+7.2% compared to the same period of 2022). The gross operating margin (Ebitda) grew by 11.6% to 168.3 million. Net financial debt stood at 506.4 million, up by 4.4 million compared to 31 December 2022. The order book, explains the company, “is confirmed to be solid at a global level also for the coming months”. In the first quarter, all the segments in which the group operates showed a positive trend: the automotive sector grew by 12.9%, motorcycle applications by 3%, those for commercial vehicles by 14% and racing by 23%. 4% compared to the same quarter of 2022.

«The results were driven by the work done in recent years, even in difficult moments, such as the outbreak of war in Ukraine – explains Tiraboschi – We managed to interpret the market in the best way, giving satisfaction to our customers. We see 2023 as a positive year, with a growth in turnover of around 10% and margins that will be in line with 2022 in percentage terms».

At Piazza Affari, the stock gains 1.4% to 13.93 euros.