Bekaert Slashes Solar Division
In response to fast but structural
changes in the global solar energy market, to growing uncertainty in other markets and to longer term
overall instability, Bekaert has announced a major realignment program, consisting of
two lines of action:
1. Actions directly related to the
changed market environment include the measures and plans to rightsize Bekaert's
global sawing wire operations including production, technology and engineering, and
having an impact on operations in several countries. Also included is the intended
realignment of stainless steel wire activities in Belgium.
2. These changed market circumstances
also drive a second line of action aiming at substantially improving the structure
that supports Bekaert's global presence and diversified product portfolio. By
optimizing the efficiency and synergy potential within the organization, the Group targets
substantial global cost savings.
Both plans are necessary to restore
Bekaert's long-term profitability. The Group also confirms its determination to remain a global
market and technological leader in full support of its customers.
Bekaert has already taken actions to
rightsize its sawing wire manufacturing footprint in China, following persistent low demand and
very sharp price falls, driven by substantial overcapacity in the market. The implementation of these
measures started in December 2011 and leads to a reduction of 1 250 jobs.
Bekaert management has today advised
its Belgian works councils concerning the impact of the proposed measures on the activities
in Belgium. This includes the intention to downsize certain activities in Aalter, Zwevegem,
Deerlijk and Ingelmunster.
Moreover, in order to realign and
optimize its organizational and cost structure on a global scale, the Group will start, without delay, a
detailed study to identify measures to reduce its overall global cost structure by € 100 million annually
in the forthcoming years.
