Bekaert steelcord sales rise 38 percent in China

Kortrijk, Belgium - NV Bekaert SA said sales of steelcord into China increased by 38 percent in the first six months of 2006 compared to the same period in 2005. Bekaert's sales of steelcord into all other parts of the world fell by 4 percent in the period. China Steelcord now generates seven percent of Bekaert's sales in the Advanced Wire Products division.

In a statement, Bekaert said, "Demand for advanced wire products for the automotive sector remained weak in both Europe and North America. Bekaert faced more intense competition in the European steel cord market, especially in passenger tyres. The company strengthened its position in North America with the acquisition of Delta Wire, a major supplier of bead wire for tire reinforcement. Bekaert is also investigating opportunities in Russia and is engaged in talks on exclusive cooperation with Uralkord.

In the advanced wire products division, Bekaert reported sales of Euro 870 million for the period, up by four percent on the first half of 2005. EBIT margin fell to 9.8 percent from 12.6 percent on higher raw materials costs, said the company. EBITDA was at 15 percent for the six-month period, down from 17.3 percent a year earlier.

Bekaert said it is expanding capacity for non-tyre products at its existing plant in Karawang, Indonesia. This unit currently supplies steel cord products to tyre manufacturers in the region, but the investments concern wires for baling and steel reinforcement, not steelcord.

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Financial results press release from Bekaert

Indonesian investment press release from Bekaert