“N.V. Bekaert S.A.” (Bekaert - Belgium) and “FNE Forschungsinstitut für Nichteisenmetalle Freiberg GmbH” (FNE - Germany) have signed an agreement to establish a 75/25 joint venture company that will be named “FREBEK GmbH”.  Bekaert will also acquire a minority share (7.5 %) in FNE.

The new joint venture will be part of Bekaert’s Advanced Materials Business Unit (BAM) (Advanced Coatings).  Both Bekaert, through its 100 % subsidiary “Emiel Vanderstraeten” (VDS), and FNE, through its 100 % subsidiary “Freiberger NE-Metall GmbH & Co Produktions KG” (FPG), are specialised in high-tech thermal spray coatings.

 The new company, Frebek GmbH, incorporated at Freiberg in Germany, will be specialised in both coating activities.

During a first period FREBEK will act as an exclusive sales agent for the coating business of FNE (FPG).   In the meantime a new production facility will be built in the vicinity of Freiberg.  Frebek is expected to start production in early 2002 when all assets and equipment related to the production of sputter targets and industrial coatings from FNE (FPG) will be moved to the new location.

 Frebek is expected to realise by 2005 a yearly turnover of approx. EUR 7 million and employ some 35 people.

 Bekaert is a technology driven Group, having its headquarters in Belgium, and producing and marketing a great variety of products based on metal transformation and a large variety of coating technologies.  Its current activities are built around four Business Units; Steel Wire, Merchant Products, Steel Cord and Bekaert Advanced Materials (BAM).  Bekaert has a leading position in Steel Cord and has recently declared its objective to triple turnover of its rapidly growing BAM Division within three years.  Total turnover of the Bekaert Group in 1999 was EUR 2.5 billion.

The “Forschungsinstitut FNE” has two subsidiaries;  “Freiberger NE-Metall GmbH & Co Produktions KG (FPG)” as a production plant and “Zentrum für Material- und Umwelttechnik GmbH (ZMU)” as a non profit R&D Company.  The activity of the institute is concentrated on R&D mainly in the field of non ferrous metals, the developing of composite and compound materials, analytics and diagnostics as well as engineering in environmental projects.  FPG has the sputter target production, the industrial coatings, special halfproducts and solder materials.

The new joint venture Frebek combined with Bekaert’s participation in FNE will enable Bekaert to broaden its technological base in the fascinating world of high-tech coatings.  Through this joint venture, both Vanderstraeten and Frebek will be in a position to better serve their customers with the most advanced products and with the largest product mix.