The Belgium-headquartered steel cord and wire manufacturer Bekaert plans in December this year to start production at the first phase of its new steel cord production plant located in Russia's Lipetsk Special Economic Zone.
The project for Bekaert's new steel cord production plant in Russia, which was started in January 2008, is scheduled to be completed in 2013. The investments involved are estimated at more than €97 million.
According to the company's report, the new mill will enable Bekaert to respond to the rising local demand for steel cord products for tire reinforcement generated by Russia's rapid economic growth. The Lipetsk region, about 400 kilometers south of Moscow, is strategically located close to the target markets, with good logistics, good access to energy supplies and a skilled labor force.
Bekaert already has a portfolio of customers in Russia for steel cord products for tire reinforcement, steel fibers for concrete reinforcement, and other specialized wire products. Bekaert's Russian customers are currently being supplied by its plants in central Europe.