Shanghai (ZXZC)- Brembo, the Italy-based global manufacturer of automotive brake systems, intends to build a joint venture with Chinese auto parts supplier Shandong Gold Phoenix Co., Ltd. (“Gold Phoenix”) in Jinan city, capital of Shandong province, according to the latter’s announcement released on July 26.

Dubbed Shandong BRGP Friction Technology Co.,Ltd., the joint venture will involve a registered capital of 41.4 million yuan ($6,133,060), which will be 50/50 split by Brembo and Gold Phoenix. The two parent companies plan to invest roughly €35 million into the joint venture over the next three years.

The designed business scope of the joint venture extends to cover the production of braking equipment and components for automobiles, machining, as well as sales of the products made by Gold Phoenix.

Photo credit: Brembo

The joint venture is set up to help expand the two parent companies' economic cooperation and technical exchanges, improve product quality, and develop new products, according to Gold Phoenix's announcement. Through the joint venture, the duo expects to gain a favorable foothold regarding quality and price in the global market by absorbing advanced technologies and scientific management approaches.

The joint venture is expected to start operation in early 2023.

Brembo is a world-leading supplier and innovator of disc brake technology for automotive vehicles. It supplies high-performance brake systems for the many manufacturers of cars, commercial vehicles, and motorbikes worldwide, as well as clutches and other components for racing. The company currently operates in 15 countries on 3 different continents, with 29 production and business sites, and a workforce of over 12,200 employees, about 10% of whom are engineers and product specialists active in R&D.