TMD Friction lays the cornerstone for a new plant in Salto

The process of transferring the operations from Indaiatuba includes simultaneous production in both plants – the transfer will increase the production volume

After 39 years in the city of Indaiatuba, São Paulo, TMD Friction, a traditional manufacturer of auto parts in Brazil, owner of the brand Cobreq and subsidiary of the Japanese company Nisshinbo, is moving to another city. On Tuesday, May 13, the company held an event to lay the cornerstone of its new plant for brake pads and brake linings in Salto, 15 km away from the current plant. With an investment of R$ 142 million, the new factory should start operations by 2016.

“Over the past two years we have had the opportunity to support auto parts suppliers which, like you, help make the state of São Paulo the automotive center with the most complete chain in Latin America. And the State Government is a partner of the automotive industry, encouraging and investing in such relevant sector,” said the director of Investment and Business of Investe São Paulo, Ermínio Lucci.

The company’s general director of the Original Equipment Division (OE), Edilson Jaquetto, highlighted the importance of the partnership with Investe SP from the very first steps of the project. “Investe SP has helped us choosing the most suitable area and is still providing assistance to the project,” he said.

He talked about the whole story of Cobreq, showing a video on how the shock absorbing technology of brakes work and a 3D demonstration of how the plant will be in the end.

The mayor of Salto, Juvenil Cirelli, celebrated the establishment of the plant in the city. “The local government has been making a huge effort to attract business ventures and TMD is part of a hall of 25 new companies announced in 2013,” he explained. “If you stayed 41 years in Indaiatuba, we hope you stay at least 100 years here – and we will make everything possible for this neighborhood to remain as an industrial district”, said Juvenil.

The 550 employees of the plant in Indaiatuba will be automatically transferred to Salto, where 200 new jobs will be created. The project is being implemented on an area covering 100,000 m², where the new plant will have 30,000 m² of built area. The investment is part of the project “Mudar para Melhorar” [in English: “Move to Improve”].

According to Jaquetto, the idea is to expand the production capacity of the company, following the market demand. While in Indaiatuba there was a production of 17 million pads per year, in Salto, this figure is expected to jump to 22 million. On the other hand, the annual production of brake linings will double, from 9 to 18 million pieces.

The director also said that there will be a period of transition with a gradual transfer to the plant in Salto between 2015 and 2016, so TMD will be operating simultaneously in Indaiatuba and Salto up to the completion of the works and installations of the new plant.

“This plant will operate with greater production capacity through cutting edge technology and new equipment. The facilities will be more modern and will meet the concepts of ergonomics and occupational health,” he concludes.
The CEO of TMD Friction Group, John Hudson, explained that the company’s decision to invest in the expansion of the Brazilian operations is directly related to the country’s economic growth.

“After more than 40 years in Indaiatuba, our plant has become an “island” – a plant in the middle of a residential neighborhood. This not only prevents us from growing and increasing the production, but also brings risks and discomfort to the population, especially because of the number of trucks that come to the plant every day. In Salto, in this industrial district, we will be able to continue to grow,” he explained.

With the investment, TMD Friction Brazil intends to increase its revenue from R$ 140 million in 2013 to R$ 215 million in 2017, also increasing the market share from 36% to 41% in the front brake pads market and from 40% to 65% in the rear brakes market.

The councilman Willhes Gomes highlighted the collaboration of Investe SP in the arrival of new investments to the city. “The work of Investe São Paulo has made the State of São Paulo grow and evolve. Choosing Salto for this investment has everything to do with what the agency saw in our city,” he said. He also stated that the legislative branch will make all efforts for the area where TMD Friction will build its plant to remain as an industrial district.

About TMD Friction

TMD Friction, a Nisshimbo Group company, is the largest manufacturer of friction materials for commercial and passenger vehicles in the global automotive industry. The company has three research and development centers, 13 manufacturing plants in eight countries, also marketing Textar, Pagid, Mintex, Don, Cosid and Dynotherm brands.

The company provides its products to the domestic aftermarket and major automakers present in the country. Globally, it employs 6,000 employees in the area of brakes and friction materials. Nisshinbo Group has 22,000 employees in total.

Read more about the automotive sector in the state

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