Kortrijk, Belgium-based Bekaert, one of the world's largest steel cord and wire manufacturers, has announced its action plan intended to raise the financial performance of the company. Bekaert stated that it aims to raise its competitiveness and upgrade its capability and speed in responding to customer needs and fast-moving market developments.
According to the company statement, increased competitive pressure and high-cost structure are affecting margins. As a result, Bekaert has introduced actions to restructure its activities in Belgium. These actions include moving activities such as test labs closer to operational sites and downsizing administrative roles in line with business needs.
Bekaert also emphasized that the Europe, Middle East and Africa (EMEA) market for steel fibers for concrete reinforcement has become much tougher and EMEA-based companies have moved their manufacturing footprint to central Europe, also sourcing fibers from low-cost countries. The company admitted that its Dramit plant in Moen, Belgium, does not have the ability to remain competitive with the current pricing trends in the EMEA, and thus it will close this plant and upscale the capacity of its Dramit plan in Petrovice, Czech Republic.