(Yicai Global) July 26 — Brake pad maker Gold Phoenix said it is teaming up with Italian brake manufacturer Brembo to form a joint venture in China to develop the Chinese firm’s international market.
The JV, named Shandong BRGP Friction Technology, will be located in Jinan, the provincial capital of Shandong province, and will have an initial registered capital of CNY41.4 million (USD6.1 million), with the companies each contributing 50 percent, Gold Phoenix announced late yesterday.
The pair expects to invest EUR35 million (USD35.8 million) in BRGP Friction over the next three years to produce automotive brakes and components to be equipped on passenger cars, light commercial vehicles, and heavy trucks, the Laoling, Shandong-based firm added, noting that the entity still needs to receive approval from China’s anti-monopoly authorities.
Gold Phoenix’s stock price [SHA: 603586] was trading down 0.9 percent at CNY14.90 (USD2.21) as of 10.20 a.m. today, after opening up 3.1 percent.
Founded in 1999, Gold Phoenix exports over 80 percent of its products to more than 70 countries in Europe and the Middle East, as well as the US. German carmaker Daimler, owner of the Mercedes-Benz brand, is among its clients.
Brembo supplies high-performance braking systems, racing clutches, and other components to famous manufacturers of cars, commercial vehicles, and motorcycles. It has 29 production and business bases in the world.
Editor: Futura Costaglione
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2022-07-26 02:48:59
