NEW YORK, June 10, 2014 (GLOBE NEWSWIRE) -- MTM, a fully owned subsidiary of Fuel Systems Solutions, Inc. (Nasdaq:FSYS), has created a new unit named BRC Brake Division to launch a comprehensive range of high-tech automotive brake pads. BRC Brake Division is located in Cherasco, Italy, and consists of a world class R&D center and new manufacturing site supervised by MTM's seasoned development experts.
BRC Brake Division's brake pads will incorporate chemical technology designed for high-performance competitive racing that is cleaner and more environmental friendly than current models. Consistent with all Fuel Systems aftermarket products, the brake pads will offer OEM equivalent quality at competitive prices and will be sold under Fuel Systems' existing brands, namely BRC Brakes, Zavoli Brakes and IBT-Italian Brake Technology, leveraging the company's existing Automotive Division distribution network of thousands of dealers and workshops, as well as through wholesalers and other channels.
BRC Brake expects to launch by the fourth quarter of 2014 with manufacturing capacity of over 1 million sets annually for distribution in the European, South American and Asian markets. Due to the consistent demand for these products, the unit is expected to derive a solid recurring revenue stream and is projected to potentially ramp to the high seven digits in revenue within its first few years.
Mariano Costamagna, Fuel Systems Solutions' CEO, said, "Our decision to invest in a new brake division is driven by this product line's leveraging of our already strong branded presence and market share in the aftermarket, the relative ease with which we can capitalize on our distribution network, and the prospect to offer our sales partners a high-tech yet cost-effective spare part at an anticipated gross margin that benefits both them and ourselves. We expect to provide a range of products addressing the technical specifications of approximately 70% of the aftermarket in our target geographies. We will continue to develop additional long-term, adjacent market opportunities for Fuel Systems."
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About Fuel Systems Solutions
Fuel Systems Solutions (Nasdaq:FSYS) is a leading designer, manufacturer and supplier of proven, cost-effective alternative fuel components and systems for use in transportation and industrial applications. Fuel Systems' components and systems control the pressure and flow of gaseous alternative fuels, such as propane and natural gas, used in internal combustion engines. These components and systems feature the Company's advanced fuel system technologies, which improve efficiency, enhance power output and reduce emissions by electronically sensing and regulating the proper proportion of fuel and air required by the internal combustion engine. In addition to the components and systems, the Company provides engineering and systems integration services to address unique customer requirements for performance, durability and configuration. Additional information is available at www.fuelsystemssolutions.com.
Pietro Bersani, Chief Financial Officer, Fuel Systems Solutions, Inc.