Peru
The Peruvian economic growth was 5% in 2013. While this growth still outpaced the regional average, the economic activity slowed to its lowest rate in four years. Growth last year was impacted by a decline in exports, lower metal prices, and weaker domestic demand.
Bekaert’s major production facility in Peru, Prodac, achieved a solid performance in 2013. Compared with a very strong 2012, sales volumes were slightly lower. Prodac managed, however, to raise its export business and to improve the operational performance of the plant after the installation of the new galvanization line in December 2012.
Chile
In Chile, the price of copper is often seen as a barometer for the health of the global economy. In 2013, the price dropped, mainly due to lower demand from China — Chile’s main trading partner. As copper exports make up the majority of total Chilean exports, the country’s economy is sensitive to such developments. Chile’s GDP growth in 2013 is expected to reach 4%, with a slight upward trend in the last quarter of the year.
Bekaert’s activities in Chile were impacted by the lower demand in the construction and mining markets compared with 2012, as well as by ongoing pressure on margins as a result of strong competition from imports. In line with GDP evolution, Bekaert’s Chilean activities picked up modestly in the last quarter of the year.
Brazil
The global economic downturn and a weaker competitive position of the local industries on both domestic and export markets, have, since 2011, interrupted the long growth cycle that Brazil had experienced in the past decade. Brazil’s GDP growth further declined in 2013, to approximately 2.5%. Brazil’s economy continued to lose momentum in the last quarter of the year when the government began to wind down its economic stimulus program, which resulted in lower consumer and industrial demand.
Bekaert has been actively supporting a strong position in Brazil for many years. The company operates, in partnership with ArcelorMittal, 9 manufacturing units in 3 states and serves customers in a very wide range of sectors. Notwithstanding difficult market conditions, Bekaert’s joint ventures performed very well and achieved solid growth in sales volumes and profit generation.
As part of the expansion plans announced at the end of 2013, Bekaert will obtain full ownership of Cimaf Cabos in Saõ Paulo in Brazil, one of the manufacturing plants currently owned by Belgo Bekaert Arames. Cimaf Cabos is a leading steel rope producer in South America and is part of a business platform which Bekaert is gradually expanding on a global level and which serves the mining, oil and gas, lifting equipment and infrastructure industries.
Bekaert gradually expands its global ropes platform, among others by taking full ownership in Bekaert Cimaf Cabos (Brazil).
World Cup winner
Belgo Bekaert Arames provided complete fencing solutions for eight stadiums of the 2014 FIFA World Cup. Securing the contracts for these stadiums presented a great challenge, since the construction involved unique and new demands. Belgo Bekaert Arames came out the winner after an extensive bidding process and succeeded in installing the security fences and gates of all sports stadiums on time.
