Bekaert moves forward with Russia tire cord expansion project

BRUSSELS—Bekaert S.A. is proceeding with a previously announced $22 million (€20 million) expansion of its rubber reinforcement production plant in Lipetsk, Russia, the company has confirmed.

"Most expansions had been implemented before the crisis and/or are in status of finalization," a Bekaert spokeswoman said in a March 22 statement to European Rubber Journal.

The Lipetsk plant "is fully operational and demand remains strong for the time being," the representative added, noting the site sources, produces and sells locally in Russia and for the wider Commonwealth of Independent States.

Operational since 2010, the Bekaert Lipetsk plant produces steel cord for the tire industry and fiber for construction markets.

In June 2021, the Belgian group announced a deal with the local government to add a new bead-wire production line and expand tire cord capacity at the Lipetsk site.

The installation of a bead wire line, said the group, would allow the plant to produce "the full range of products for the reinforcement of tires."

Scheduled for production in the first half of 2022, the project was expected to create 80 new jobs.

At the time, Bekaert said it expected the new capacity to support demand from existing customers while becoming "an export platform to the European region."

In her update, the spokeswoman said the export platform is "now not the first ambition, but tire cord is not on the sanction list, so not by definition excluded."