Bekaert becomes a global player
in reverse osmosis vessels for water purification.

Bekaert announces that it has acquired 80% of the shares of Progressive Composite Technologies (PCT), located at Vista in San Diego (CA, U.S.A.). The remaining 20% of the shares will continue to be held by management of PCT.

PCT, established in 2000, is a producer of reverse osmosis vessels, made by filament winding technology, that are used for purification and desalination of water. Under management with a long standing experience in the field, PCT realised in 2001, its first year of sales, a turnover of USD 2.7 million, representing one tenth of their installed capacity, and employed 26 people.

Recently, PCT was awarded a project in Florida with a capacity of 150,000 m³ per day, which will be the largest reverse osmosis plant in the United States.

The PCT acquisition fits perfectly the profitable growth strategy of Bekaert's Advanced Materials division to target markets with high growth potential through international expansion in selected segments and geographical regions based on its technological competencies. Target markets that have been identified are renewable energy and energy management, pure air and pure water, all critically important global issues that contribute to a sustainable development of the world.

As the per capita availability of pure water drops sharply in many regions in the world, the demand for proven water filtration technologies increases rapidly. Reverse osmosis, a high quality membrane separation technology, is the leading and most cost effective technology of today and even more of the future. Today's global market for reverse osmosis vessels is approx. 60 million euros and grows with 8 to 13% per annum, depending upon the region. The main markets today are Europe and the USA, followed by the Middle East and the Far East.

Bekaert, through Bekaert Composites S.A. in Munguia (Spain), is currently the leader in Europe for reverse osmosis vessels, thanks to the very important Spanish desalination market. Through the acquisition of PCT, Bekaert becomes the N° 2 player in the world capable of quickly supplying regular needs as well as big desalination projects. Combined net sales in reverse osmosis of Bekaert Composites S.A. and PCT of 8.9 million euros are expected to grow with more than 10% per year and to carry a profit margin (Ebit on sales) of approx. 15%.

The Bekaert Group is a world leader in advanced metal transformation and coating technologies, headquartered in Belgium, with more than 90 production locations employing more than 17.000 people and with total sales of 2.8 billion euros.

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