KORTRIJK, Belgium (Jan. 23, 2008) — N.V. Bekaert S.A. said it will build a steel cord plant in Russia, with initial production to begin in 2010.
Bekaert will spend $140 million on the project, to be located in the Lipetsk special economic zone about 240 miles south of Moscow and 60 miles north of Voronezh.
The announcement follows by four months the ending of takeover/merger talks with Russian steel cord producer UralKord.
Bekaert said the project is in response to rising local demand for tire reinforcements generated by Russia´s rapid economic growth. Bekaert said the Lipetsk region has good logistics, good access to energy supplies and a skilled labor force.
Bekaert said the investment will take place in phases through 2013. The first phase is scheduled to enter production in 2010. Bekaert did not say when it expects to break ground on the factory.