Chinese Brake Pad Enterprise Expands Overseas Presence: Friction One Acquires Mexican Base
Recently, Friction One Brake Technology (Xiantao) Co., Ltd. successfully acquired the brake pad production base of DRiV, a leading enterprise in the international automotive braking industry, located in Ciudad Juárez, Mexico. This news has drawn significant attention within the brake pad industry. On May 11, the two parties officially signed the contract, marking a crucial step in Friction One's globalization strategy.
After more than a year of arduous negotiations, Friction One stood out from the fierce competition among over a dozen well - known global braking enterprises. Ciudad Juárez, across the river from El Paso, the United States, enjoys a superior geographical location and convenient transportation, which is conducive to quickly entering the North American market.
Founded in 2004, Friction One focuses on the research, development, production, and sales of high - end sedan brake pads and brake discs. Currently, the company has three factories in Xiantao, with an output value of approximately 1.5 billion yuan in 2024. In recent years, Friction One has been actively advancing towards high - tech and high - end manufacturing. It has established a provincial - level technology center in Hubei and an innovative research base for post - doctoral mobile stations. It has overcome a series of technical problems and launched innovative products such as high - end ceramic brake pads and copper - free environmentally friendly nano - friction new materials. It has reached cooperation agreements with dozens of well - known global automotive brands, accounting for 40% of the European market and about 30% of the US market, and is gradually expanding into overseas markets in Asia, Africa, etc. On April 30 this year, at the annual meeting and supplier exhibition of the American automotive parts group, Friction One won the Outstanding Partner Award.
Zhang Zewei, the person in charge of Friction One, introduced that in the future, the Xiantao factory will focus on the production of core components, while the Mexican factory will be responsible for terminal assembly, and the products will be sold globally. Previously, more than 95% of the company's products were exported to the North American market. The acquisition of the Mexican base can not only effectively avoid trade risks but also leverage the local industrial resources and labor advantages to reduce production costs and enhance product competitiveness.
Data shows that 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%. Zhang Zewei predicts that with the gradual release of the production capacity of the Mexican factory and the coordinated development of domestic and overseas bases, the company is expected to add an output value of 1 billion yuan this year, and the annual output value is expected to exceed 2.5 billion yuan. After the signing of the contract, Zhang Zewei quickly returned to Xiantao to select and form a new team from the Xiantao factory, aiming to enter and take over the production base in Mexico as soon as possible.
Xiantao City has a sound development momentum of export - oriented economy, with 298 foreign - trade enterprises currently. In the first four months of this year, the city completed foreign trade exports of 2.51 billion yuan, a year - on - year increase of 7.6%. Li Zhijie, Director of the Bureau of Commerce of Xiantao City, said, "The current international trade situation is complex and volatile. Enterprises need to actively adapt and explore diversified international markets. The government will also give full play to its role to help enterprises develop steadily."
The successful acquisition of the Mexican brake pad base by Friction One is a positive breakthrough for Chinese brake pad enterprises against the backdrop of global industrial chain restructuring. In recent years, the global brake pad market has been growing steadily. According to QYResearch data, the global market size reached 6.036 billion US dollars in 2024, and it is expected to grow to 7.087 billion US dollars by 2031 at a compound annual growth rate of 2.5%. The Asia - Pacific region has become a growth engine, among which the Chinese market size has exceeded 40 billion yuan, with a growth rate far exceeding the global average. However, industry competition is becoming increasingly fierce. International brands such as Bosch and ZF (TRW) control more than 60% of the OEM procurement share globally, and technical patents and global networks have built deep barriers. Against this backdrop, Chinese brake pad enterprises are enhancing their competitiveness through technological innovation, cost control, and overseas layout. This acquisition by Friction One will promote the enterprise to further expand overseas markets, enhance its international brand influence, and also provide new ideas for the international development of Chinese brake pad enterprises.
