Bekaert Announces Italy Plant Closure and Brazil Expansion Investment
The Bekaert Italy plant closure reflects a strategic shift as the company restructures its European operations while investing in growth opportunities in Brazil. This move allows Bekaert to improve efficiency and strengthen its position in global rubber reinforcement markets.
Bekaert Italy Plant Closure Impacts Operations
Bekaert has announced plans to close its steel cord plant in Figline e Incisa Valdarno, Italy, and cease all operations at the site. The company has already informed the works council, unions, and local authorities about the decision.
As a result, 318 employees will be affected. The facility currently produces steel cord for tires, bead wire, wire for high-pressure hoses, and semi-finished wire products.
However, the company cited a high cost structure at the Italian plant, which has prevented sustainable financial performance. Therefore, Bekaert decided to take action to protect its long-term competitiveness in the European market.
Brazil Expansion Strengthens Global Growth
At the same time, Bekaert is expanding its presence in South America through its joint venture, Belgo Mineira Bekaert Artefatos de Arame Ltda (BMB). This partnership, formed with ArcelorMittal, operates three plants in Brazil.
BMB will invest approximately $33 million to expand its Itaúna facility in Minas Gerais. Through this investment, the plant will add half-product capacity and become a fully integrated manufacturing site.
In addition, the expansion will increase tire cord production capacity by 35%, allowing BMB to grow its market share across the region.
Investment Timeline and Job Creation
The expansion will take place over a three-year period. It includes new construction, infrastructure upgrades, and the installation of advanced machinery designed by Bekaert Engineering.
As a result, the project will create around 200 direct and indirect jobs, supporting economic growth in the region.
Learn more about Bekaert: https://www.bekaert.com/
Learn more about ArcelorMittal: https://corporate.arcelormittal.com/
