MILAN (Reuters) -- Italian brakes maker Brembo said on Tuesday it had agreed to buy a 66 percent stake in Chinese brake disc producer ASIMCO Meilian Braking Systems for 616 million yuan ($97 million) as it follows car-making customers into areas with high growth potential.
ASIMCO, located in Langfang, in China's Hebei province, is a cast iron foundry and plant for the production of brake discs for passenger cars. The company, which employs around 580 people, expects sales of around 650 million yuan this year, Brembo added in a statement.
"China is consistently the biggest car market in the world and this is also confirmed for the years to come," Brembo Chairman Alberto Bombassei said. "The need for higher quality and technology content by Chinese carmakers is more evident."
The deal is expected to be completed in coming months, subject to customary authorizations and antitrust clearance.