December 02, 2008

Bekaert consolidates its activities in Venezuela and Colombia

Belgian steel wire and cord manufacturer Bekaert has signed an agreement with Siderurgica Venezolana Sivensa SA for the acquisition of 50.002% of the shares in Vicson SA resulting in full ownership for Bekaert. The purchase price related to this transaction amounts to USD 35.5 million. Both parties anticipate a timely closing of the transaction.

Vicson SA, which is located in Venezuela, manufactures wire products for industrial, construction and agricultural applications. The company staffs 650 employees. With an annual production capacity of about 100,000 tons it records annual sales of EUR 100 million.

Bekaert also indirectly acquires a majority interest in the JV Productora de Alambres Colombianos SA Proalco SA in which Vicson SA has a 75% share. Combined with the 12.5% share that Bekaert holds through its JV in Ecuador, Bekaert becomes 87.5% shareholder of Proalco SA. This company staffs 340 employees and posts annual sales of € 50 million. Proalco produces similar wire products for the Colombian market.

Mr Oscar Augusto Machado Koeneke president of Sivensa that “We have come to a good agreement with our longstanding partner Bekaert on the sale of our share in Vicson SA. This decision is fully in line with Sivensa’s business strategy to concentrate on the hot briquetted iron and steel businesses, in which the company has steadily grown in recent years.”

Mr Bert De Graeve CEO of Bekaert said that “Latin America is for Bekaert a growth market which is in full development. This agreement is important as it allows us to strengthen our strategic positions in Venezuela and Colombia.”