BRUSSELS (Sept. 29) — Steel cord producer Bekaert S.A. has agreed to buy a minority share of Hong Kong-based Shougang Concord Century Holings Ltd., which operates one steel cord tire plant in Jiaxing City, China.
Bekaert said the $21 million deal for an 18.9-percent share will strengthen its position in China, where it claims to be the leading producer of steel cord for tires with 200,000 metric tons of annual capacity at three plants.
Shougang Concord´s steel cord activity is through its Jiaxing Eastern Steel Cord Co. Ltd. subsidiary in Jiaxing City, which has annual capacity of 30,000 tons, according to its Web site.
Bekaert said its participation in Shougang Concord will help support the Hong Kong firm´s growth, especially in the steel cord business. Shougang Concord also has activities in pre-stressed concrete wire and rods and in copper and brass products.
Both parties have outlined the scope for closer collaboration in material supply and services, Bekaert said, thereby combining the benefits of Bekaert´s status as a worldwide supplier with Shougang Concord´s knowledge of the Chinese market and the support of the authorities at all levels.