Kortrijk, Belgium-based Bekaert, one of the world's largest steel cord and wire manufacturers, has announced its expansion plans for Central and Latin America, including the startup of a steel fibre plant in Costa Rica, the acquisition of the majority of shares in the ArcelorMittal steel wire plant in Costa Rica, and raising its share from 45 percent to 100 percent in the Cimaf ropes plant in Brazil.
Bekaert's expansion in Costa Rica will be implemented via the Bekaert Ideal Holding and hence includes a regional extension of the partnership between Bekaert and its Ecuadorian partners. The deal also builds on the partnership which Bekaert and ArcelorMittal currently have in Brazil.
According to Bekaert, the decision to build a manufacturing plant in Costa Rica illustrates the strong belief in continued growth opportunities for innovative products in the construction sector in Latin and Central America. Bekaert and ArcelorMittal will invest around $20 million over two years. The new plant which will have an annual production capacity of 20,000 mt of steel fibers is expected to become operational in the second quarter of 2014.