(Yicai Global) July 26 -- Chinese brake pad maker Gold Phoenix and Italian braking systems manufacturer Brembo have agreed to form a joint venture in China to better develop the international market.

The new company, Shandong BRGP Friction Technology, will be based in Jinan, the capital of Shandong province, with registered capital of CNY41.4 million (USD6.1 million), which its parent companies will contribute half each, Laoling-based Gold Phoenix said late yesterday.

The pair expects to invest EUR35 million (USD35.8 million) in BRGP Friction over the next three years to produce automotive brakes and components for passenger cars, light commercial vehicles, and heavy trucks, Gold Phoenix said. The JV still needs Chinese regulatory approval, it added.

Founded in 1999, Gold Phoenix exports more than 80 percent of its products to over 70 countries in Europe and the Middle East, as well as the United States. German carmaker Daimler, owner of the Mercedes-Benz brand, is among its clients.

Gold Phoenix’s stock price [SHA: 603586] inched 0.4 percent lower today to close at CNY14.98 (USD2.22), after jumping 3.4 percent at the market open.

Brembo supplies high-performance braking systems, racing clutches, and other parts to well-know vehicle and motorcycle manufacturers. The Curno-based company has 29 production and business bases worldwide.

Editor: Futura Costaglione