The management of Bekaert Group announced Wednesday the decision to phase out its operations in the Surrey plant, British Columbia, Canada, which will affect 110 employees.
The Surrey plant is active in the production of steel wire for various industrial applications. Bekaert has observed a downward movement in the market for these product lines in the Northwest of the North American market, leading to a structural production overcapacity in the relevant market segments. In addition, aggressive competition from Asian countries is putting continuous pressure on sales prices.
These external developments have had a strong negative impact on the profitability of Bekaert Canada Limited and on the competitive position of the respective operations in the North American market, calling for a realignment of the production platform in that region.
Management regrets the need to implement this measure, but sees no other option to safeguard a long-term competitive position of its steel wire activities in North America. Conversations with employee representatives on an adjustment plan, detailing the provisions of the closure, will commence immediately.
Bekaert intends to continue to serve its customers and markets in North America from its other North American manufacturing sites.