Akebono Brake plans to invest JPY10bn (USD101.8m) to expand its presence in North America, reports Bloomberg. The company will invest JPY7bn (USD71.3m) this year and JPY3bn (USD30.5m) next year, Hisataka Nobumoto, Chairman, President & CEO at the Japanese brake supplier told Bloomberg in an interview. In 2012, the company invested JPY6bn (USD61.1m) to strengthen its presence in North America.
The company is expanding production of rotors at its Clarksville plant in Tennessee (US). In the beginning of this year, Akebono announced investment of USD82m in capacity expansion at the plant. The Japanese supplier acquired Clarksville plant as part of its deal to takeover Robert Bosch North American brake business in 2009.
Significance: Akebono Brake is expanding its operation in North America, its biggest market, to gain from strong growth in vehicle production in the region, especially in the US. “We can expect demand in the U.S. to continue to stay strong for the next year or two,” Nobumoto told Bloomberg. In financial year (FY) 2012-13 the Japanese brake supplier generated 46.8% of its sales from North America. The company counts GM, Ford and Nissan as its major customers. GM was the biggest customer of Akebono, generating 24% of its revenue in FY2012-13.
