Bekaert Scales down Activities at Lipetsk Plant in Russia
Strategic Research Institute
Published on :
28 Jul, 2.022, 6:43 am
Zwevegem Belgium headquartered steel cord & wire manufacturer Bekaert announced that it is scaling back activities in Russia due to the war in Ukraine. Bekaert said “As for our business in Russia and business activities with customers and suppliers in Russia, we stopped all new investments in our local production plant in Lipetsk since March 2022. We remain operational in Lipetsk in support of the livelihood of our employees and their families but we are scaling back our activities in and with Russia and will ensure compliance with the ever evolving rules. The Lipetsk plant is a local-for-local business and the activity level has decreased. Exports to customers in Russia have strongly reduced. We will continue to monitor the situation very closely and evaluate scenarios accordingly.”
Bekaert also said “At Bekaert we are united by the belief that there should be no harm to anyone, and as a consequence, we condemn any act of violence and aggression against people. Our thoughts are with the people from Ukraine and our priority is the wellbeing of our employees and their families and to support them wherever they are. We want to thank all our teams in the region which are doing their utmost to help those in need in whichever way they can, and as a company we are supporting various humanitarian efforts, through donations and by offering employment and accommodation at different locations. Among our team of 27,000, we employ people from more than 70 countries, including Russia and we respect and cherish the diversity wherever we operate in the world.”
The Bekaert Lipetsk plant opened in 2010 and produces steel cord for the tire industry and Dramix fibers for construction markets. Bekaert had decided to add an additional 50% tire cord production capacity to the plant by mid 2018 and to double the half-product capacity.
Global leader in steel wire transformation and coating technologies the story of Bekaert started in Zwevegem, a rural village in Belgium in 1880, where local farmers are faced with the perennial problem of cattle showing the stubborn habit of straying beyond the boundaries of their fields so damaging other people’s property. Mr Leo Leander Bekaert translates their need into a business opportunity: he starts up a small business in barbed wire by putting nails in twisted wire. Leo Leander Bekaert didn’t invent barbed wire, but he soon designs his own barbs, star-shaped crowns with six sharp points which can be woven into the wire. In 1881 he patents this invention and, in next to no time, recruits most of the village to work at home making ‘crowns’ enabling Bekaert to continue producing at full speed. Today Bekaert is preferred partner serving customers in 120 countries with processing approximately 3 million tonnes of wire rod per year. It draws wire in different diameters and strengths, even as thin as ultrafine fibers of one micron, groups the wires into cords, ropes and strands, weave or knit them into fabric, or process them into an end product. Depending on the application, applies coatings which reduce friction, improve corrosion resistance, or enhance adhesion with other materials.