Bekaert, a worldwide technological and market leader in drawn wire products and advanced coatings, yesterday signed an agreement with Hankuk Steel Wire Co. Ltd (South Korea) for the acquisition of the Qingdao Hansun steel wire plant in Qingdao (Shandong Province, China).
The Qingdao Hansun entity started up in 2008. The modern plant is equipped to produce steel wire products for a wide range of applications in sectors such as the construction business, the paper industry, and mining. The plant is located near the Qingdao sea port (the world’s 9th busiest container port) and currently employs 233 people.
Henri-Jean Velge, Bekaert Group Executive Vice President Wire and Stainless Technologies, stated: “The integration of this entity will strengthen our position in the Asian market and adds sizable capacity to Bekaert’s current Wire platform in China. We welcome the new team and expect that the business addition will immediately contribute to our ambitions for growth in sectors where Bekaert has built up international market presence and technological expertise.”
Bekaert will purchase, through its wholly-owned holding company Bekaert Wire Products Hong Kong Co. Ltd., 100% of the shares of Qingdao Hansun Steel Co. Ltd. The transaction represents an enterprise value of approximately CNY 270 million and is subject to customary closing conditions. Bekaert and Hankuk Steel Wire expect to close the deal in the third quarter of 2011.