Brembo, the Bergamo company specialized in brakes high quality, has decided to focus on carbon-ceramic brake discs responding to a strong demand for this type of product. The company has thus announced that the 50/50 joint venture with Sgl Carbon, (Brembo Sgl Carbon Ceramic Brakes, or Bsccb) has doubled production capacity of the plants in Italy (in Stezzano near Bergamo) and in Germany (in Meitingen) two years ahead of schedule for an investment of 150 million euros.
The increase in production allows the Bsccb joint venture “to meet the growing demand and the ever-increasing demands of automotive customers, particularly in the premium and luxury segments, where it is high performance required braking", reads the Brembo press release. The joint venture produces carbon-ceramic brake discs intended for Ferrari, Lamborghini and top-of-the-range sports cars.
Il Brembo shares on the Milan Stock Exchange in the late morning it fell slightly to 9,08 euros (-0,7%).
How much does the joint venture earn?
Brembo Sgl Carbon Ceramic Brakes' production capacity expansion began in 2023 to meet the growing demand for this type of brake disc. In 2024, the joint venture achieved revenues of €268 million, up 5% year-over-year, an EBIT of €46 million (-7% year-over-year, 17,1% margin), and a net profit of €32 million (-11% year-over-year), contributing €15 million to Brembo's pre-tax profit and cash flow (4% and 15%, respectively).
"The investment was announced in 2023, and the acceleration demonstrates the strong demand in this segment. Since Brembo holds a 50% stake, it does not consolidate the joint venture's results line by line, but only records the pro-rata share of net profit above the operating line," Equita stated, reiterating its buy rating and target price of €11 on Brembo shares.
The strengthening of the plants in Italy and Germany
In Germany, in Meitingen, two new warehouses with a total area of approximately 8.500 square meters have been erected. In Italy Meanwhile, in Stezzano, the production area within existing buildings has been expanded by approximately 4.000 square meters. New production facilities have been installed at both sites, ensuring high-performance and efficient production, with increasing process automation. The entire production chain, from molding to machining and assembly, has been expanded and optimized. "With the expansion of our production capacity in Stezzano and Meitingen, we are charting a course strategic route for the future", commented Florian Hofner and Nicola Frambrosi, CEOs of Brembo Sgl Carbon Ceramic Brakes, in a statement. "We are making our production future-proof, ensuring we can reliably respond to our customers' requests and needs. The combination of proven technologies and targeted innovations strengthens our position in the international market."
