Brembo launches Chinese production hub

LONDON -- Italian brakes maker Brembo has opened a 70-million euro ($92.29 million) production centre in eastern China, concentrating its manufacturing activities in a single hub to better serve its Asian clients.

At full capacity, the plant -- on the outskirts of Nanjing -- will produce about six million brake discs a year, employing 1,000 people. The group employed 6,700 at the end of 2011.

"China represents one of the most promising markets for the future of our group in Asia," Brembo Chairman Alberto Bombassei said in a statement.

Brembo's Chinese sales grew 11.6 percent last year.

Brembo, whose clients include Italian carmaker Fiat and Ferrari's super car unit, started production in China in 2000 through a joint venture with Yuejin Motor Group.

It has since expanded activities through acquisitions and, more recently, via an agreement with Donghua Automotive Industrial Co., part of top Chinese automaker SAIC.

The Bergamo-based company, which posted a 17 percent rise in 2011 revenue to 1.25 billion euros, operates in 15 countries and has a strong presence in fast-growing emerging markets such as Brazil and India, as well as China.

Brembo shares closed 3.5 percent higher, outperforming a 3 percent rise in the STOXX Europe 600 auto index.

($1 = 0.7585 euros) (Reporting by Francesca Landini; Editing by David Hulmes)