Berkaert's Steel cord China reports major growth

ERJ staff report (RD)

Kortrijk, Belgium - Bekaert, a steel cord manufacturer to the tyre industry, has recorded 63.7 percent sales growth in its Steel cord China business in 2008. Steel cord sales remained static in the rest of the world with just 1.4 percent growth, the company reported in its annual financial results.

The company's Advanced Wire Products unit, accounting for 88 percent of consolidated sales, which includes Bekaert's Steel cord activities, increased sales by 26.4 percent to Euro 2 331 million in 2008 and reported growth in every geographic region, particularly in Asia. Operating result increased to Euro 352 million from Euro 215 million in 2007.

The company's Steel cord unit in China accounted for 20 percent of combined sales for the Advanced Wire Products unit, the company said.

The company achieved record sales in 2008, including consolidated sales of Euro 2 660 million, an increase of 22.5 percent on 2007. The company said this was partly due to 17.7 percent organic growth, largely driven by passed-on raw material price increases, and 5.8 percent growth from the acquisitions in Vicson, Venezuela and Proalco, Columbia.

Bekaert said it does not expect the current activity slowdown to last on a company-wide scale and notwithstanding the economic circumstances, is confident of continuing expansion in emerging markets and growing its product portfolio.

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Press release from Bekaert