Disc brake technology maker Brembo is planning to invest $39 m to build a new aluminum caliper production plant in Mexico.
The plant expected to produce two million calipers per year for users in NAFTA region which includes US, Canada and Mexico.
The 334,000 square feet plant is expected to generate an annual turnover of $120m for the company.
The initial construction work of the Escobedo plant is expected to start from 2016 and it will become fully functional by the end of 2018.
Apart from Mexico Brembo is planning to construct a new castiron foundry in Michigan, which is scheduled to be completed by 2017.
Brembo Group chairman Alberto Bombassei said: "With the opening of the new plant in Mexico, Brembo confirms its strong determination to continue growth in North America.
"The demand for aluminum calipers, expanding quickly outside of Europe, opens up opportunities for further development in North America for Brembo, which has always been a leader in this technology.
"We can take advantage of this opportunity only if we invest in production capacity close to ourcustomers in the local market."
