Bekaert in talks on future of Sardinia tire cord plant

Brussels – Bekaert has started discussions with “social partners and the relevant authorities” to assess options for its tire cord production facility in Sardinia, Italy.

The talks aim to identify measures to protect employees while also “proactively searching for a third party with a long-term vision for the Sardinia site to safeguard employment.”

In a 1 Oct statement to ERJ, Bekaert said the move follows an analysis of developments in the European tire manufacturing sector and demand outlook for the tire cord products from Italian plant.

The company pointed to “significant and irreversible structural transformation” in the automotive sector, which it said has “accelerated the structural evolution of the tire manufacturing system”.

“Western [tire] producers are increasingly focusing on premium products, gradually reducing their exposure to commodity segments,” said the Bekaert statement.

Furthermore, it noted that Western tire makers are sourcing a growing share of tire cord from lower-cost Asian sources, in response to rising cost pressure in the industry.

In this context, Bekaert said material suppliers are forced to align their manufacturing strategies.

In the aftermath of these challenging market dynamics, Bekaert said, the site in Sardinia "is particularly exposed as it is dedicated to a specific application segment."

In addition to that, other issues such as “high logistics and energy costs” weigh on the plant’s competitiveness.

Acknowledging the “value and expertise” of its employees in Sardinia, Bekaert said it is “committed to act proactively and intends to explore a feasible and responsible option for the plant.”