ERJ staff report (DS)
Kortrijk, Belgium - Bekaert has said it intends to make a big investment in steel cord in Russia. The company intends to spend over 97 million euros to build a new factory in the Lipetsk special economic zone. Lipetsk is located about 100 km north of Voronezh, and about 400 km to the south (and a little east) of Moscow.
Bekaert said the investment will take place in phases over the period 2008-2013. The first phase is scheduled to enter production in 2010.
Bekaert said the project aims to respond to the rising local demand for steel cord products for tyre reinforcement generated by Russia's rapid economic growth. Bekaert said the Lipetsk region has good logistics, good access to energy supplies and a skilled labour force.
In October 2007, Bekaert pulled out of talks with Russian steelcord producer UralKord, after announcing a year ago that it intended to buy the company for around € 47 million. Uralkord, located in Magnitogorsk, manufactures steel cord products for tyre reinforcement and, according to Bekaert, serves nearly a quarter of the Russian market.
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Press release from Bekaert