MILAN, July 23 (Reuters) - Italian brakes maker Brembo will build a new foundry in Michigan to expand its manufacturing capability in the United States, betting on continued strength of the country’s automotive sector.
Brembo, which counts General Motors, Fiat Chrysler , BMW, Ford, Honda, Daimler , Mitsubishi and Subaru among its clients in the United States, plans to invest 74 million euros ($99.6 million) to build a foundry with capacity of up to 80,000 tons a year of brake disc castings, it said on Wednesday.
The foundry will supply the company’s existing Homer facilities in Michigan, where the castings are made into finished products.
“(The) new foundry in Michigan reinforces the company’s commitment to the North American market, which has grown substantially over the past five years and is slated to become Brembo’s No.1 geographic market by the end of 2014,” the company said.
By 0918 GMT Brembo’s shares were up 0.15 percent, in line with Milan’s all-share index. ($1 = 0.7432 Euros) (Reporting by Valentina Za; Editing by David Goodman)