Bekaert expands in Latin America

BEKAERT (Belgium) and Companhia Siderurgica Belgo Mineira (CSBM) (Brazil) are close to reach an agreement whereby N.V. Bekaert S.A. will acquire 45 % of the wire activities of CSBM, for a value of approximately USD 95 million, constituting a new independent company named :

BELGO-MINEIRA BEKAERT TREFILARIAS LTDA (BMBT).

Bekaert is the leading worldwide manufacturer of steel wire, steel wire products and steel cord, headquartered in Belgium and listed at the Brussels stock exchange, with 61 manufacturing plants spread over 20 different countries. Combined sales of consolidated and associated companies was BEF 90 billion in 1995 representing a sales volume of almost 1.8 million tonnes of steel wire, steel wire products and steel cord.

CSBM, with headquarters in Minas Gerais (Brazil) has a leading position in steel, steel wire and wire products in Brazil. The company is quoted on the Sao Paulo stock exchange and is a business conglomerate of some 30 enterprises engaged in mining, production of wire rod, wire and wire products, steel cables, automotive parts and services.

It also holds participations in several industrial companies outside Brazil.

CSBM controls 29 consolidated and affiliated companies and employs over 12,850 people.

Its sales revenues for 1995 were at a level of USD 1.2 billion.

Bekaert and CSBM are partners since many years in three joint ventures in Brazil, namely in Belgo-Mineira Bekaert Artefatos de Arame Ltda (BMB) with two production plants for steel cord, at Belo Horizonte and Itauna, both located in the state of Minas Gerais, and in Bemaf at Hortolondia and Cimaf at Osasco for steel wire and steel wire products, both located in the state of Sao Paulo.

The new company, BMBT, will operate three plants, at Contagem and Sabara in the Minas Gerais state and at Jossan in the state of Bahia. Bemaf will be integrated in BMBT. At the start BMBT is expected to produce 400,000 tonnes of wire and wire products and to employ 1,750 people.

This acquisition, combined with Bekaert´s existing subsidiaries, reinforces Bekaert’s position in Latin America.

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