Bekaert buys two cord plants from Bridgestone

Bekaert announced that it has reached an agreement with Bridgestone to acquire two steel cord plants in China and Thailand, which is expected to strengthen the company's position in the global market for tire reinforcement materials. The deal is expected to be closed in the first half of this year, subject to regulatory approvals and other standard conditions, and a long-term supply agreement has also been signed. The €60 million deal will be financed by Bekaert's own cash, and the company expects the asset purchase to increase its annual revenue by €80 million.

Bridgestone has years of experience in cord production, and the scope of the deal includes Bridgestone (Shenyang) Steel Cord Co., Ltd. in Shenyang (Liaoning, China) and Bridgestone Metalpha (Thailand) Co., Ltd. in Rayong (Thailand), which were opened in 2004 and 1996, respectively. The total staff of the two sites is around 550 employees.

It is noted that the planned sale of the plants is part of the company's strategy to improve its competitiveness in the medium and long term by cooperating with global partners and responding to changes in the business environment.

Bekaert's Rubber Reinforcement (RR) division, the largest within the company, has been a leader in the global market for tire reinforcement materials for over 70 years, and the acquisition of the new plants is expected to help not only further strengthen its position in the tire cord segment but also strengthen its long-standing strategic partnership with Bridgestone, one of the world's largest tire manufacturers, and the agreed agreement is intended to ensure supply stability in the future.

"Bekaert and Bridgestone are linked by a strategic partnership based on mutual trust," said Yves Kerkens, CEO of Bekaert. "We will be happy to welcome the plant employees to our team and maintain our commitment to developing and mastering innovations together with Bridgestone."

Bridgestone says it is restructuring its steel cord business in areas where it can leverage the benefits of partnering with partners with specialized knowledge and resources. In the future, Bridgestone will continue to develop and produce steel cord in key segments where "in-house knowledge and technology are crucial". Production will be carried out at the Saga plant (Japan), which is Bridgestone's main steel cord production site.

Last year, Bridgestone also announced the sale of its carbon black plants in Thailand and Mexico.

Photo: kedglobal.com