Japanese auto-parts maker Akebono Brake is planning to invest JPY10bn ($100.6m) by 2014 to expand its operations in North America.
About JPY7bn ($70.4m) of the total investment will be spent in 2013, followed by JPY3bn ($30.2m) next year.
With this investment, the company plans to expand output of rotors at its plant in Clarksville, Tennessee in order to take advantage of the estimated increase in sales in the US auto industry.
In 2012, the brake manufacturer invested JPY6bn ($60.3m) in North America.
Akebono Brake president Hisataka Nobumoto was quoted by Bloomberg as saying that he expects a revival in earnings growth after rising demand allowed the company to boost parts prices in the US.
"We can expect demand in the U.S. to continue to stay strong for the next year or two," Nobumoto added.
Profits of the company have declined 48% to JPY478m ($4.8m) during the three months ended 30 June 2013, due to a decrease in the price of some parts in the US.
The company expects to increase its net income to JPY2.5bn ($21.5m) for the fiscal year ending March 2014.
Akebono currently supplies brakes to automotive giants including GM, Ford Motor and Nissan Motor.
