Bekaert plans to increase wire business in China

Kortrijk, Belgium -- NV Bekaert SA has said it wants to further expand its activities in advanced wire products in China. The sustained growth of the market and Bekaert's determination to continue to play a leading role as a worldwide top quality supplier to its local and international customers in China requires the company to further invest. The company recently opened a non-wire production unit in Suzhou, China.

Bekaert said it is currently working on an increase of its tyre-related steelcord production capacity in China by at least 50%.

In May, 2003, Bekaert decied to increase production capacity for steel cord products for tire reinforcement in China up to 120 000 tonnes annually. This investment program raised Bekaert's annual consolidated capital expenditures for 2004-2005 to approximately € 160 million and involved the construction of a new plant in Weihai (Shandong Province) and the expansion of the plants in Jiangyin (Jiangsu Province) and in Shenyang (Liaoning Province).

The company has also established a steelcord technical centre in Jiangyin aimed primarily at tyre applications. The company said this centre will be further expanded, and has complemented the facility with a meeting and training centre next door.

In Shenyang, Bekaert completed its additional production capacity for steel cord reinforcement in off the road” tyres. Bekaert has anticipated the shortage in these tyres and is ready to serve the Chinese market.

Bekaert said it has also donated advanced laboratory equipment to the Materials Research and Test Center of the China Rubber Industry Association in Beijing, which plays an important role in the standardisation of testing procedures and the comparisons of materials used in the rubber reinforcement industry.