Bekaert, worldwide technological and market leader in drawn wire products and applications, and Xinyu Iron & Steel Co (Xinsteel), a Xinyu-based iron and steel company, announced the successful closing of their partnership transaction by which Bekaert acquires 50% of the spring wire and Aluclad activities of Xinsteel in Xinyu, Jiangxi province, China. These activities represent an annual turnover of approximately CNY500 million.
The partnership includes:
- two manufacturing plants in Xinyu which produce high carbon steel wires, mainly spring wires for the automotive, motorcycle, and engineering sectors. The portfolio complements Bekaert’s existing product range manufactured in its wire plant in Jiangyin, Jiangsu province.
- the Aluclad (aluminium clad) wire and strand production unit, serving markets for overhead conductor networks and data communication. Manufacturing is concentrated in one production plant in Xinyu.
The acquisition deal follows all customary closing and approval processes and represents a purchase value of CNY107 million. The companies herewith formally enter a partnership aimed at combining complementary technologies and applications to open up new opportunities in the respective target markets. The results of the joint venture will be included in Bekaert’s financial records under the equity accounting method as from 1 December 2011.
