Belgium-based steel cord and wire manufacturer Bekaert has announced that it has signed a preliminary agreement with Sardinian industrial engineering and metalworking company Nuova Icom for the reindustrialization of its Macchiareddu site in Sardinia, Italy.
Under the preliminary agreement, the Macchiareddu site will be transferred to Nuova Icom, while Bekaert employees at the facility will be reemployed in accordance with the terms and conditions of the agreement.
Tire industry changes affect Bekaert's Sardinia operations
Bekaert stated that structural changes in the tire industry in recent years have affected market demand and the competitive position of its tire reinforcement operations in Sardinia. As a result, production at the site has gradually declined, while tire cord production is no longer viable under current market conditions. According to the company, the agreement follows a process aimed at finding a sustainable future for the site while supporting the continuity of employment in the region. Bekaert stated that discussions regarding the transition will continue with the relevant parties.
As SteelOrbis reported last year, Bekaert had also exited the steel wire business in Latin America as part of its restructuring due to volatile market conditions.
