Bekaert to reduce output of Lanklaar plant, as demand moves east

Kortrijk, Belgium -- Bekaert SA, the Belgian wire producer, has begun negotiations with employees to reduce substantially the output of its plant in Lanklaar, Belgium, which currently makes a range of steel cord products for the tyre industry and employs 277.

Bekaert said in a statement, "Bekaert intends to use the plant in the future to produce a limited selection of high-quality steel cord products. This will affect the number of jobs, the organisation and the work systems at Lanklaar." Bekaert said 125 jobs are likely to be affected at the plant.

In addition, Bekaert announced a restructuring at its Hemiskem, Belgium plant, which makes low carbon wires for coat hangers and paint rollers and high carbon wires for industrial cables.

With respect to the Lanklaar plant, Bekaert said, "customers increasingly demand to be supplied from Central Europe. Bekaert's investments in Slovakia, ie the construction of a plant in Sladkovicovo and the acquisition of the Hlohovec plant, fit in this framework and were necessary to secure Bekaert's future in these markets."

The statement continued, "The management is willing to work out systems, in consultation with representatives of the employees, whereby as many compulsory redundancies as possible are avoided, for example, by way of outplacement programmes, severance pay and the conventional early retirement schemes."