Friction One Acquires Mexican Brake Pad Production Base To Accelerate Global Expansion
Recently, Friction One Brake Technology (Xiantao) Co., Ltd. successfully acquired the brake pad production base of Dura-Metal, a global brake industry leader, located in Juárez, Mexico. This move marks a key step in Friction One's global layout of the braking industry chain. Upon completion of the acquisition, Friction One will adopt a coordinated operation model between its Xiantao and Mexican bases to further strengthen its competitiveness in the global market.
Founded in 2004, Friction One specializes in R&D, production, and sales of high-end passenger car brake pads and discs. With three factories in Xiantao, Hubei, the company achieved an output value of nearly 1.5 billion yuan in 2024. Previously, over 95% of its products were exported to the North American market. In recent years, influenced by changes in international trade dynamics, Friction One has implemented a global strategy to actively expand into international markets. Through continuous technological innovation and capacity upgrades, the company has established partnerships with dozens of renowned global automotive brands, exporting products to Europe, South America, Asia, Africa, etc. Its market share in Europe has expanded to 40%, while the U.S. market remains stable at approximately 30%.
The acquired Mexican production base is located in Juárez, a border city in northern Mexico, across the river from El Paso, U.S. Under the U.S.-Mexico-Canada Agreement (USMCA), Mexican automotive parts exported to the U.S. enjoy zero tariffs. Zhang Zewei, head of Friction One, stated that acquiring the Mexican factory is a critical part of the company's globalization strategy. In the future, the Xiantao factory will focus on producing core components, while the Mexican factory will handle final assembly, with products sold globally. This layout will significantly reduce tariff costs and enhance the company's competitiveness in the North American market.
In terms of technological innovation, Friction One has continuously increased R&D investments, introduced advanced domestic and international equipment, hired expert academicians as consultants, and established provincial-level technology centers, post-doctoral research bases, and post-doctoral innovation practice bases to promote high-tech advancements and high-end manufacturing. The company's R&D team has successfully overcome multiple technical challenges, launching high-end ceramic brake pads, copper-free eco-friendly nano-friction new materials, and other products to meet market demands for high-performance and environmentally friendly brake pads.
In the first four months of this year, Friction One achieved an output value of 650 million yuan, a year-on-year increase of 38%. With the gradual release of production capacity at the Mexican factory, the company expects to add 1 billion yuan in output value this year, with the annual total output value有望 (expected to) exceed 2.5 billion yuan. Zhang Zewei also revealed that the company plans to further expand its overseas market share and enhance brand influence in the next 3-5 years, aiming to become a global leader in the braking field.
This acquisition is not only a significant milestone in Friction One's development but also reflects the rise of Chinese brake pad enterprises in the global market. In recent years, Chinese brake pad companies have accelerated their penetration into international markets with cost-performance advantages and localized services, occupying an increasingly important position in the global competition landscape.
