ITT Inc. announced it signed a 10-year strategic agreement for the supply of aftermarket brake pads to Continental AG (Continental). The agreement is expected to generate more than $1 billion in revenue over the term, the company says.

Under the agreement, ITT Friction Technologies (which operates within the Motion Technologies segment that accounts for over 45% of total company revenues) will supply Continental’s ATE brake pads brand with sustainable copper-free pads and ceramic pads for enhanced performance, the company says. The contract begins on Jan. 1, 2024, immediately after the current agreement expires, and extends until Dec. 31, 2033.

ITT says the agreement is comprised of three parts:

• A contract to produce ATE premium line brake pads for cars and light commercial vehicles.
• A brand licensing agreement allowing Continental to market and sell highly trusted brake pads from Galfer, an ITT brand.
• An exclusive agreement for the production of other Galfer braking products for cars and light commercial vehicles.

“Continental is an iconic name in the automotive space and we’re honored to extend our partnership with them,” said Luca Savi, ITT’s chief executive officer and president. “This agreement demonstrates the confidence Continental and car owners have in ITT’s ability to deliver quality products on time. We’re excited about the value created for ITT and Continental through this continued partnership.”