KORTRIJK, Belgium (Jan. 2) — Steel cord producer N.V. Bekaert S.A. has bid to buy Russia's ZAO Uralkord for about $60 million to strengthen its position with the growing Russian tire industry.
Magnitogorsk, Russia-based Uralkord controls about one-fourth of the Russian market for steel tire cord, Bekaert said.
"The development of a strong position in Russia is an essential part of our strategic objective of sustainable profitable growth," said Marc Vandecasteele, group executive vice president.
"Given the growth potential in the Russian market we want to work closely with the steel industry and anticipate a significant increase in the demand for top quality products."
Bekaert currently supplies customers in Russia from plants in central Europe.
The parties hope to close the transaction in the coming months, Bekaert said.