Bekaert addresses structural changes in the market environment
Bekaert decides to cease the fixed abrasive (diamond) sawing wire activities
Alongside the ongoing improvement programs towards higher level performance, Bekaert has determined a number of actions to address structural changes in the market environment. Some of those changes are caused by the lasting effects of the Covid-19 pandemic on economies and demand patterns, while others are a result of sector-specific competitive developments.
In addressing these structural changes, the Group is enhancing the effectiveness of its operating model and process efficiencies across the business, while continually evaluating the set-up and usage of its footprint in view of driving sustainable value creation.
As part of the global approach and measures, Bekaert has decided to cease the fixed abrasive (diamond) sawing wire activities, located in Jiangyin (China), with immediate effect.
The competitive environment of fixed abrasive (diamond) sawing wire is characterized by continual fierce price pressure, making it impossible to drive sustainable value creation. The other sawing wire activities, loose abrasive sawing wire and core wire activities, also based in Jiangyin, will continue. Bekaert has built a solid competitive position in these product lines. They will be integrated within the Fiber Technologies platform of Bekaert’s Specialty Businesses division, which serves among other sectors, common markets including the semi-conductor and solar energy industry. This set-up will enable the business to drive innovations in these segments.