Bekaert Inaugurates Russian Tyre Cord Plant

The inauguration of Bekaert’s new steel cord facility in the Russian city of Lipetsk took place on January 20, and to mark the occasion Russian Federation President Dmitry Medvedev visited the plant. The Russian President and three Deputy Prime Ministers were accompanied by Bekaert CEO Bert De Graeve during their time at the site, which is located within the Lipetsk Special Economic Zone (SEZ), some 400 kilometres south of Moscow.

An event held to celebrate the inauguration was attended by customers and suppliers from within the region and dignitaries including Mr. Lavrentiev, the Lipetsk director of the Federal Agency for Special Economic Zones, Mr. Korobeinikov, vice-governor of Lipetsk Province, and H.E. Mr. Trouveroy, the Belgian ambassador to the Russian Federation.

Bekaert Lipetsk will produce steel cord for tyre reinforcement. This new manufacturing platform will be servicing the domestic market and the wider CIS region. In so doing, Bekaert is responding to the rising local demand for steel cord products. Bekaert comments that the Lipetsk site is strategically located close to its regional target markets, with good logistics and easy access to energy supplies and skilled labour. The new plant currently employs 92 people. Another 320 jobs will be created along with the continued investments planned, from now through 2013.

“Setting up a local production plant in Russia is consistent with our strategic focus of investing in growth markets,” said De Graeve. “Bekaert expects that the country’s growth potential and investment impulses for industry and infrastructure will further fuel economic activity and demand. We highly appreciate the Government’s commitment in providing support and guidance to investors. This has been demonstrated in all phases of Bekaert’s investment project in Lipetsk. The visit of the President and the Ministers of the Russian Federation today is an ultimate expression of Government’s interest and commitment, and a great honour to our company.”

“The start-up of this plant in less than one year is an excellent example of true international cooperation between teams,” added Vladimir Lavrentiev, the Lipetsk director of the Federal Agency for Special Economic Zones. “And more specifically, between the Lipetsk SEZ expert teams on one side, and a global industrial company such as Bekaert on the other. We wish the plant success in achieving its objectives, so that plans for increased employment and investment can be realised soon.”