Brembo S.p.A. Business Report FY ended Dec. 2015
|(in million EUR)
|FY ended Dec. 31, 2015
|FY ended Dec. 31, 2014
|Rate of change
|Sales by application
|Passenger Car applications
|Commercial Vehicle applications
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2015 increased by 15.0% over the previous year to EUR 2,073.2 million. The Company recorded growth in its passenger cars, motorbikes, and commercial and industrial vehicle segments. Sales increases in these segments were partially offset by a decrease in sales in the Company’s racing segment, which was due to the elimination of Sabelt S.p.A. and Belt & Buckle S.r.o. from the Company’s scope of consolidation.
2) Passenger Car applications
-The Company’s sales for passenger car applications in the fiscal year ended December 31, 2015 were EUR 1,546.2 million, an increase of 18.8% from the previous year. Sales increases in Europe, the U.S., and China were partially offset by declines in Russia, Brazil, Argentina, and Japan.
3) Commercial Vehicle applications
-The Company’s sales for commercial and industrial vehicle applications totaled EUR 207.0 million for the fiscal year ended December 31, 2015, an increase of 10.3% over the previous year. Sales of light, medium and heavy commercial vehicles all increased compared to the previous year, driving the Company's sales up.
-The Company signed an agreement with ASIMCO (China) Limited and ASIMCO Technologies Hong Kong Limited to buy a 66% stake of ASIMCO Meilian Braking Systems (Langfang) Co. Ltd. for CNY 616 million (approximately EUR 86 million). The remaining 34% is owned by Langfang State-owned Asset Operation Co. Ltd. The closing of the operation is expected in the coming months. ASIMCO Meilian Braking Systems, located in Langfang, Hebei Providence, China is a cast iron foundry and machining plant for the production of passenger car brake discs which primarily supplies joint ventures of European and U.S. customers. The Company expects sales of CNY 650 million in 2015 (approximately EUR 90 million) and employs a workforce of 580 people. (From a press release on September 29, 2015)
-The Company engineered an optimized brake system for the all-new 2016 Chevrolet Camaro. On the Camaro LT, the available Company brakes include 12.6-inch (321x30 mm) front rotors with four-piston aluminum calipers. The Camaro SS employs 13.6-inch (345x30 mm) front rotors with four-piston aluminum calipers and 13.3-inch (339x26 mm) rear rotors with four-piston calipers. The entire brake system will be assembled in the Company’s Homer, Michigan plant. (From a press release on June 1, 2015)
-The Company announced that it supplies its new braking system for the new Ferrari 488 GTB. Both front and rear calipers have pistons with various diameters to guarantee that the brake pad wears evenly, as otherwise it would wear out faster on the brake disc entrance corner. The Company’s CCM brake discs, which are made of a composite ceramic material, ensure a weight reduction of 50% compared to cast iron brake discs. (From a press release on March 4, 2015)
-Approximately 10% of the Company's total employees are engineers and product specialists that work in research and development.
-The Company has research facilities in Italy, Poland, China and the United States.
-The Company is one of 12 partners in the EU-LIVE project (Efficient Urban Light Vehicles). The project, presented last June, involves a European consortium of companies in the automotive sector, parts manufacturers and research institutes. EU-LIVE aims to create a common platform that would allow three different electric vehicles to be developed in 36 months, with two, three and four wheels. All of these vehicles will weigh less than 450 kg and will be ready to go into production. (From a press release on September 15, 2015)
-In 2015, the Company continued the joint development with innovative friction materials designed for lightweight discs. The Company can be considered to be the only manufacturer with the in-house expertise for this type of development.
-In 2015, the Company continued research on developing mechatronic systems. The high level of integration will allow the brake system to interact with other vehicle systems, such as electric traction motors and new suspension-steering concepts. The Company is continuing to develop a Brake By Wire system, and electric parking brakes (EPB) where the electronic control is integrated in the ABS units.
-The Company is a part of the LowBraSys project, funded by the European Union as part of the Horizon 2020 program. The project began in the second half in 2015 and will last 36 months. The goal of the project is to demonstrate the effectiveness of specific friction materials in terms of particulate emission reduction.
-In 2015, the LIBRA project, which the Company is involved with, was funded. The LIBRA project aims to develop brake pads which use composite material instead of steel, thus reducing the weight of the component.
In-wheel motor technology integration with brake-by-wire systems
-The Company announced that it will reveal an innovative "in-wheel motor" technology with integrated "brake-by-wire" systems, suitable for autonomous driving at the International Motor Show in Frankfurt. The Company has fitted a car with four electric engines, one for each wheel. Each engine has 90 kW of maximum power and 900 Nm of maximum torque, averaging 60 kW and 600 Nm respectively. The core of this system is a permanent magnets brushless motor equipped with a compact stator-rotor assembly. The braking system consists of the brake-by-wire electromechanical system with lightweight caliper and disc. (From a press release on September 15, 2015)
PVT Plus pillar venting system for brake discs
-The Company has developed a new PVT Plus pillar venting system for brake discs. The PVT Plus venting system increases thermal cracking resistance by up to 30% and ensures longer disc life. Similarly, the improved air flow in the system reduces operating temperature by up to 30%. A further advantage is the reduction of the disc's mass by up to 10%. The new PVT Plus ventilation is the result of two years of dedicated research by the Company at its Kilometro Rosso site in Italy. Produced at the Mapello plant in Italy, PVT Plus is initially aimed at premium models like the Audi A6, the BMW 5-Series and the Mercedes E-Class. (From a press release on May 20, 2015)
Lightweight brake discs
-The Company has continued work on improving the performance of cast-iron discs with a specific focus on reducing disc weight. A disc which features cast iron for the braking ring and thin steel laminate for the disc hat provides weight reductions of up to 15% compared to standard discs. This brake disc was used on the Mercedes MRA platform.
Aluminum alloy brake calipers
-The Company was able to create a brake caliper from an aluminum alloy in a thixotropic state, that is, an alloy made at a lower temperature than that of casting. In doing so, the new brake caliper provides weight savings between 5 and 10% while still providing the same performance capabilities.
|(in million EUR)
|FY ended Dec. 31, 2015
|FY ended Dec. 31, 2014
|FY ended Dec. 31, 2013
-Of the Company’s capital expenditures for the fiscal year ended December 31, 2015, EUR 137.5 million was invested in property, plant and equipment, while the remaining EUR 18.4 million was invested in intangible assets.
-The Company’s most significant capital expenditures for the fiscal year ended December 31, 2015 by region are as follows:
- North America: 40%
- Italy: 27%
- Poland: 15%
- China: 9%
- Czech Republic: 6%
Investments in Italy
-The investments made in Italy during the fiscal year ended December 31, 2015 were used primarily for the purchase of production plants, machinery and equipment. In addition, EUR 11.6 million was used for development costs.
Investments outside Italy
-Construction of a cast-iron foundry in Michigan, close to the Company’s facilities in Homer, began in 2015. The construction of the foundry will allow the Company to begin vertical integration of its production capacity in the U.S. and is expected to complete in 2017. The Company expects to invest EUR 74 million in the construction of the foundry.
-On October 21, 2015, the Company held a ribbon-cutting ceremony for the opening a foundry and plant near Monterrey, Mexico, dedicated to the processing and assembly of aluminum calipers. When fully operational, the plant is expected to have a production capacity of two million calipers per year. Approximately EUR 32 million will be invested in a three-year period from 2015-2017.
-Investments to increase production capacity in Eastern Europe continued through 2015 at the industrial hubs in Dabrowa Gornicza, Poland, and Ostrava-Hrabova, Czech Republic. The Dabrowa Gornicza facility casts and processes brake discs for cars and commercial vehicles, while the Ostrava-Hrabova facility casts, processes and assembles brake calipers and other aluminum components.
-The Company developed a EUR 34 million investment plan for the period from 2014 through 2017 to build and start a new plant in Niepolomice, Poland, which will specialize in the processing of steel disc hats.