EMEA: thriving on a mix of markets
Bekaert’s presence in the mature Western European markets on the one hand and the emerging markets of Eastern and Central Europe on the other resulted in an overall good performance in the EMEA region in 2010.
Economic conditions in Western Europe improved slightly in 2010. From Bekaert’s viewpoint, almost all sectors performed well throughout the year. In Germany especially, our products were in high demand.
In 2010, we witnessed the surprisingly quick and stable revival of the Western European automotive industry, which boosted our steel cord business. Construction, however, was the exception in the upward economic trend. To further strengthen our position in the tire cord market we acquired the Bridgestone tire cord plant BMI in Sardinia (Italy). As part of this transaction, Bekaert and Bridgestone have entered into a long-term supply agreement of tire cord to Bridgestone. After a seamless transition, during which we maintained full and faultless continuity of supplies and plant production, we initiated the integration of the plant in the Bekaert Group. We began brand visualization and the alignment of all systems and procedures according to schedule. In 2010 already the plant played a major part in helping Bekaert meet the high tire cord demand.
As part of the takeover agreement with Arisawa, Bekaert sold its progressive composites plant in Munguía (Spain).
The market demand for our metallic coated low carbon wires (fencing wire, pulp-baling wire, gabion wire,…) and rope wires for fishing, hoisting and automotive applications was overall rather good across Western Europe. However, in some segments such as offshore rope wire and armoring wire for data transmission cables, the markets remained rather sluggish as projects were postponed due to lack of financing.
Demand for our innovative specialty wire products was high in 2010, driven by the increased prices of iron ore and consequently those of steel, and historically low stocks in the entire European supply chain. This benefited our sales of wiper components, spring wires for automotive applications and low carbon applications like bookbinding wire and champagne cork wire. In addition, we focused on the further alignment of sales and marketing teams and the production teams in the different plants.
As for technological development, we focused on new and cost-effective processes and improved products with higher tensile strength performance and better corrosion resistance.
Innovation and product development at our European manufacturing platforms will be a determining factor in future success. The strong link with the Bekaert Technology Center (Deerlijk, Belgium) and Bekaert Engineering (Ingelmunster, Belgium) provides our Western European production platform with a unique competitive advantage.
Innovation and product development are key drivers to secure sustainable profitable growth.