Bekaert Australian Steel Cord Plant to Close

Belgium’s Bekaert Group and its Australian joint venture partner OneSteel Pty Ltd have decided to close their steel cord plant located in Geelong, Australia. This decision follows an extensive review of business performance, including customer and market outlooks, financial performance, plant operations and sourcing alternatives.

Employees, customers and suppliers have been advised of the closure, which will occur by the end of the year after all customer supply contracts and commitments for 2007 have been completed. The company says it will work closely with the plant’s 74 employees and their union representatives to provide advice and job placement assistance.

The joint venture, known as Bekaert Australia Steel Cord Pty Ltd, was established in 1986 to supply steel cords and hose wires to tyre and hydraulic hose manufacturers in Australia, New Zealand and South East Asia. Bekaert says these markets will for the immediate future be supplied with products sourced from factories in North and South East Asia.