Combined sales: |
€ 1 001 million |
Consolidated sales(*): |
€ 953 million |
Capital expenditures (PP&E)(*): |
€ 47 million |
Total assets(*): |
€ 1 221 million
|
Employees: |
11 200 |
(*) Consolidated entities |
China
China’s GDP growth in 2013 was 7.7%, in line with 2012. While this rate is still far stronger than that of other economic powers and the global average, the abrupt decline from the double digit rates of the previous decade has made business conditions in China more difficult. The global economic crisis of the past years has tempered China’s export growth. Combined with a maturing domestic demand in certain sectors, this led to manufacturing overcapacity and fierce competition in several industrial markets.
Bekaert’s activities serving automotive markets in China achieved significant organic volume growth as a result of demand pick-up in the Chinese tire sector and by seizing growth opportunities in other steel wire solutions serving car and truck manufacturers in the country.
As part of its global growth strategy in bead wire for tires, Bekaert has expanded its related production capacity in Jiangyin (Jiangsu Province). Bekaert’s technological breakthrough in ternary alloy coating on steel cord, developed and extensively tested in the Group’s Technology Centers, was rolled out to our manufacturing platform in China, and has proven successful in various aspects. It helps tire makers to make their processes cleaner as it eliminates the need to add cobalt to the rubber compound. The current lab and field tests have proven to offer promising prospects in the tire markets.
Bekaert’s engineering plant in Jiangyin (Jiangsu Province), was able to significantly raise its activity level in the second half of 2013, as a result of Bekaert’s expansion investments in Dramix® and bead wire manufacturing.
The integration of the joint venture activities within the partnership with Xinyu Iron & Steel Co. Ltd (Xinsteel) in Xinyu (Jiangxi Province) has taken more time and effort than anticipated due to inefficiencies, the complexity of the platform, and unfavorable market conditions. Improvements are expected with the move to the newly constructed plant, Bekaert (Xinyu) New Materials Co., Ltd, which will house the spring wire manufacturing activities that were previously located in two separate factories.
The new spring wire plant in Xinyu will primarily serve domestic customers, producing spring wires for various applications.