Bekaert pulls out of Uralkord talks - another Russian venture fails

Kortrijk, Belgium - After months of negotiation, Bekaert has withdrawn from talks with ZAO Uralkord on a possible takeover. ZAO Uralkord, located in Magnitogorsk (Russia), produces steel cord products for tyre reinforcement for the Russian market.

Bekaert said the negotiations were both difficult and protracted. The company said it became convinced that no agreement could be reached with the current shareholders of ZAO Uralkord that would meet Bekaert's criteria for pursuing its strategy of sustainable profitable growth in Russia.

Bekaert said it is now considering other options to improve its position in Russia. The company said it has built up a customer base in Russia for steel cord products for tyre reinforcement, which are currently supplied to Russia from Bekaert plants in Central Europe. After failing to buy UralKord, the company is considering other options.

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Press release from Bekaert