Bekaert expands further in China

On 7 March 1998, N.V. Bekaert S.A. and Shenyang Wire Rod Company have signed an agreement to set up a joint venture company in the People’s Republic of China for the production of Steel Cord.

The new joint venture between Bekaert and Shenyang Wire Rod Company will be called Bekaert - Shenyang Steel Cord Co. Ltd. and will have a registered capital of USD 6 million. Shares of the new joint venture will be owned for 80 % by Bekaert and 20 % by Shenyang Wire Rod Company. The company will be located in the Shenyang Economic and Technical development zone, will produce 3 to 4,000 tonnes of Steel Cord, and will employ some 50 people at the start. Start of production is planned for mid 1998.

Shenyang Wire Rod Company is a Chinese company with an annual turnover of about USD 15 million, producing 250.000 tonnes of wire rod, 7.000 tonnes of copper products and 4.000 tons of rubber reinforcement products per annum.

Shenyang Wire Rod Company is a "Large State and First-Class Enterprise " located in Shenyang City, the capital of Liaoning province in the north of China, where also large tire manufacturers are located. The company employs about 3.000 people and was awarded the title of "State Gold Medal Product".

Bekaert is the leading world-wide manufacturer of Steel Wire, Steel Wire Products, Steel Cord and Advanced Materials, with a total Group turnover in 1997 of BEF 97 billion, producing in 1997 2.2 million tonnes of products in 66 plants and employing more than 17,000 people

Bekaert - Shenyang Steel Cord Co. Ltd. is the Bekaert Group’s second production unit for steel cord products in the People’s Republic of China. The first unit, China-Bekaert Steel Cord Co. Ltd. (CBSC) is located in Jiangyin, Jiangsu province and was started in 1995. CBSC is also expanding its capacity to approx. 25.000 tonnes of tire cord and 8.000 tonnes of bead wire.

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