Friction One Acquires Mexican Brake Pad Base To Accelerate Global Layout
Recently, Friction One Brake Technology (Xiantao) Co., Ltd. ("Friction One" for short) successfully signed a contract with DuraVerde, an international leading enterprise in the automotive braking industry, to officially acquire its brake pad production base in Ciudad Juárez, Mexico. This acquisition represents a critical step in Friction One's global strategy and marks a further elevation of the company's position in the global braking industry chain.
Located on the northern border of Mexico, across the river from El Paso, Texas, in the U.S., Ciudad Juárez benefits from the United States-Mexico-Canada Agreement (USMCA), which grants zero-tariff treatment to Mexican automotive parts in the U.S. market. Zhang Zewei, head of Friction One, stated that establishing a factory at the "doorstep of the U.S." can effectively mitigate trade risks and further consolidate the company's influence in the global braking industry chain. The acquisition followed more than a year of negotiations, during which Friction One stood out from fierce competition with over a dozen global renowned enterprises.
Founded in 2004, Friction One specializes in R&D, production, and sales of high-end passenger vehicle brake pads and discs. With three factories in Xiantao, the company achieved an output value of approximately 1.5 billion RMB in 2024, with over 95% of its products exported to the North American market. Since launching its global development strategy in 2018, it has actively expanded into international markets. By introducing advanced domestic and foreign equipment, hiring expert academicians as consultants, and establishing provincial-level technology centers and post-doctoral research bases, the company has continuously upgraded its technical capabilities, launching innovative products such as high-end ceramic brake pads and copper-free eco-friendly nano-friction new materials. It has established partnerships with dozens of global renowned automotive brands. Currently, the European market accounts for 40% of its business, the U.S. market about 30%, while it is also actively developing overseas markets in Asia, Africa, and other regions.
In the first four months of this year, Friction One achieved an output value of 650 million RMB, a year-on-year increase of 38%. As the production capacity of the Mexican factory is gradually released, forming a coordinated development pattern with the Xiantao factories, the company expects to add 1 billion RMB in output value this year, with an annual output value likely to exceed 2.5 billion RMB. Zhang Zewei revealed that the Xiantao factories will primarily focus on producing core components in the future, while the Mexican factory will handle terminal assembly, with products sold globally.
This acquisition not only helps Friction One further expand its market share and optimize its global industrial layout but also drives new breakthroughs for the company in technological R&D, manufacturing, and market expansion. In the face of complexity and uncertainty in international trade, Friction One has proactively adapted by actively developing diversified international markets, laying a solid foundation for the company's sustainable development.
Li Zhijie, Director of the Xiantao Municipal Bureau of Commerce, stated that with the current complex and changing international trade landscape, the government will fully leverage the roles of an effective market and a proactive government to support enterprises in addressing challenges, expanding into international markets, and ensuring steady development. Friction One's successful acquisition also provides valuable experience and lessons for other export-oriented enterprises in Xiantao.
