Bekaert's sales of steelcord to China rocketed in 2006

Kortrijk, Belgium - About halfway down Bekaert's results statement for the 12 months to December 2006 is a bombshell. Its revenues from steelcord in China were up by 54 percent, compared to the previous year. Sales of steelcord in other regions declined by around 7 percent.

In the Advanced Wire Products division, sales were overall five percent higher at €1724 million (2005: €1640 million). The Steelcord China business generated eight percent of that (around €138 million), while other steelcord activities generated 27 percent of the AWP revenues (around €465 million).

In a astatement, Bekaert said, "Despite the heightened competition, Bekaert was able to advance its position in China significantly and posted a 54 percent sales growth in steel cord products, mainly for truck tyre reinforcement. With an investment program of close to € 100 million Bekaert increased its production capacity in China, by extending the production plant in Weihai (Shandong province) and by building two new plants in very short order, in Jiangyin (Jiangsu province) and in Shenyang (Liaoning province). In 2007, Bekaert will maintain this level of investment as the Chinese market shows strong and sustained growth."

The statement continued, "In Europe, Bekaert recorded a lower demand for steel cord products. In North America, the company acquired Delta Wire Corporation, a major supplier of bead wire for tyre reinforcement based in Clarksdale (Mississippi). The strike at Goodyear in the fourth quarter had a severe impact on the level of activity at the steel cord plants in the United States. In anticipation of a sustained downturn trend in demand on the North American market, Bekaert decided to close the plant in Dyersburg (Tennessee)."

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Results statement from Bekaert