Bekaert expands in China

N.V. Bekaert S.A. and Shanghai Ergang Co. Ltd. have signed an agreement to set up a joint venture company in the People’s Republic of China for the production of Dramix®, a steel fibre for concrete reinforcement. Shares of the new joint venture will be owned for 70 % by Bekaert and 30 % by Shanghai Ergang.

N.V. Bekaert S.A., parent company of the Bekaert Group, is located in Belgium. The Group is world-wide leader in steel wire, steel wire products and steel cord, with more than 60 production centres in over 20 countries around the world representing in 1996 a turnover of more than BEF 77 billion and employing more than 16,000 people.

Shanghai Ergang Co. Ltd. is a Chinese company with an annual turnover of USD 183 million, producing 700,000 tonnes of wire rod and 50,000 tonnes of steel wire per annum and employing some 6,000 people. Shanghai Ergang Co. Ltd. is a subsidiary of the Shanghai Metallurgical Holding Group, owned by the Chinese Ministry of Metallurgical Industry, and controlling 30 companies active in the production of steel and steel products, with an annual turnover of USD 2.8 billion.

The new joint venture between Bekaert and Shanghai Ergang will be called Shanghai Bekaert Ergang Co. Ltd. The company will be located in rented premises in the free trade zone of Pudong in the Shanghai area. Initial investment is planned at USD 8.5 million for a yearly production of 5 to 6,000 tonnes of Dramix®, and will employ some 35 people at the start. Start of production is planned for mid 1998. Other steel wire products will be added to the joint venture in a second phase.

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