Italian manufacturer of braking systems Brembo has started work on its first production site in Rayong province, Thailand.
The new €40m ($43.31m) site will manufacture braking systems for European and US motorcycle producers, expanding Brembo’s presence in South East Asia. The plant has a total area of 17,000m² and is expected to create 150 new jobs.
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Brembo CEO Daniele Schillaci said: “The opening of the new production site in Thailand is a crucial step in our global expansion strategy.
“We strengthen our position in the key two-wheeler segment and consolidate Brembo’s role as a solution provider for our customers operating in the country. With this investment, we lay the groundwork for further developments of our business in the ASEAN [Association of Southeast Asian Nations] region.”
FDI inflows in Thailand have made a quick recovery following Covid, but the country continues to struggle with more investment due to the rising interest rate, which now stands at 2.50%. As a result, foreign direct investment levels dropped from $14.64bn in 2021 to $10.03bn in 2022, according to UNCTAD.
Founded in 1961, Brembo is headquartered in Curno, Bergamo. The motorcycle business currently accounts for around 13% of the company’s total revenues.
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