Brembo has entered into an agreement to purchase 66 percent of ASIMCO Meilian Braking Systems, a company producing braking discs in the Beijing area.

Brembo S.p.A. signed an agreement with ASIMCO (China) Limited and ASIMCO Technologies Hong Kong Limited to buy 66 percent stake of ASIMCO Meilian Braking Systems (Langfang) Co. Ltd. at a price of Rmb 616 million (approximately $96 million).

The remaining 34 percent is owned by Langfang State-owned Asset Operation Co. Ltd. The closing of the operation is expected in the coming months, after completion of the customary authorizations and antitrust clearance.

ASIMCO Meilian Braking Systems, located in Langfang (Hebei Providence, China), is a cast iron foundry and machining plant for the production of brake discs for passenger cars, to supply nearby carmakers, mostly JVs of European and U.S. customers. The company expects sales for Rmb 650 million in 2015 (approximately $102 million) and employs a workforce of 580 people.

Brembo Chairman Alberto Bombassei stated, “China is consistently the biggest car market in the world and this is also confirmed for the years to come. The need for higher quality and technology content by Chinese carmakers is more evident, as well as the spreading of global car platforms. This new Brembo investment in China confirms the strategy of the Group to closely follow our global and regional customers where the growth potential is higher.”