Released on December 3, 2009

Brake systems specialist Brembo S.p.A., Curno, Italy, has signed an agreement to purchase $12.8 million worth of plants and equipment from Donghua Automotive Industrial Co. to establish a new integrated manufacturing hub in Nanjing, China.

Brembo will add the new hub to its existing Chinese-based joint venture with Donghua, Brembo Nanjing Brake System. Brembo expects the new manufacturing center to triple its output of brake discs and calipers by 2013.

The purchase will include a metalcasting facility and a machining facility, where Brembo intends to produce brake calipers and discs for use in cars and commercial vehicles. For the project, Brembo has formed a new fully-owned subsidiary, Brembo Foundry Nanjing Co. Ltd., with share capital of approximately $15 million.

The purchase agreement will take effect on Jan. 15, 2010, once final approval has been given by Chinese authorities. The new manufacturing hub will become operational in early 2010. Brembo said in a press release it plans to further invest about $30 million in the metalcasting facility between 2011 and 2014.

Brembo supplies high performance brake systems for producers of cars, commercial vehicles and motorbikes, as well as clutches, seats, seat belts and other components for racing manufacturers. The company operates 34 production and business sites in 14 countries with 5,400 employees.