Bekaert notes €34m cost at set-to-close Italy plant

Zwevegem, Belgium – Despite “solid results” Bekaert’s margin performance was significantly impacted by losses at its closing Figline rubber reinforcement operation in Italy.

In June, the Belgian group announced plans to close the 318-employee steel-cord production operation, which it acquired from Pirelli.

In EMEA, the earnings (EBIT) margin dropped to 5.0% due to costs of €34 million for operational losses incurred since the announcement of the closure of its Figline plant, impairment losses of the site’s assets and the expenses accrued for the closure.

Bekaert acquired the plant as part of a €30-million deal which also included the transfer of Pirelli steel cord reinforcement sites in Turkey, Romania, Brazil and China to the company.

According to Bekaert, the competitive position of the Figline site had been under pressure in recent years, with “significantly higher cost structure” compared with other Bekaert plants in EMEA.