Bekaert, headquartered in Belgium and global producer of Steel Wire, Steel Wire Products and Steel Cord and a rapidly growing producer of Advanced Materials, has decided to expand significantly its Steel Wire production capacity in the People’s Republic of China by starting up two new joint ventures, namely

 JIANGYIN FASTEN-BEKAERT OPTICAL CABLE STEEL PRODUCTS Co. Ltd.

and

BEKAERT-JIANGYIN WIRE PRODUCTS Co. Ltd.

Both companies are being set up together with Bekaert’s existing partner in China, Jiangsu Fasten Co. Ltd.

Jiangsu Fasten Co. Ltd., parent company of the Fasten Group, is a major Chinese company formerly controlled by the Government but which recently was successfully introduced on the Shanghai Stock Exchange. Jiangsu Fasten Co. Ltd. controls more than 30 companies, all of them active in the steel and metal industry. The Fasten Group’s turnover reached close to EUR 160 million in 1998.

1) JIANGYIN FASTEN-BEKAERT OPTICAL CABLE STEEL PRODUCTS Co. Ltd.

This joint venture will specialise in the production of steel wire and cables used for power transmission and telecommunications. The Fasten Group will own 70% of the stock and Bekaert 30%. The company will be based in the Economic Development Zone at Jiangyin. The total investment is estimated to reach EUR 8.5 million. The factory’s total production capacity in the final phase will be 28,000 tonnes, with a total workforce of 45 employees. The Fasten Group currently manufactures about 8,500 tonnes of similar types of wire per year, which has enabled it to build up a leading position in the Chinese market.

2) BEKAERT-JIANGJIN WIRE PRODUCTS Co. Ltd.

The second joint venture will, in principle, cover all other wire products. It will be 90% owned by Bekaert and 10% by the Fasten Group. During the initial phase especially fine high-carbon wires will be produced for use in areas such as the textiles industry, the oil industry and machine building. The product portfolio will include also welded fences for use along motorways and railways. During a later phase other types of wire and wire products will be added to the range. This factory will be based also in the Jiangyin Economic Development Zone, where an option on a 10 ha. site has been taken. The investment required for the initial production of 2,400 tonnes of fine high-carbon wires and 6,550 tonnes of welded fences is estimated at EUR 13.5 million, whereby 110 personnel will be employed.

These two new companies will strengthen Bekaert’s presence in the People’s Republic of China significantly.

Bekaert from now on operates six production units in China:

Two for Steel Cord:

Three for Wire:

One for Engineering:

This expansion will enable Bekaert to participate to the fullest extent in the strong growth taking place in this region, thereby also confirming its global leadership in the industry.