Bekaert to close Canadian plant as part of realignment in North America
Bekaert announced that it plans to phase out its Surrey plant in British Columbia, Canada, as part of a realignment of its steel wire activities in North America in response to weak market conditions.
A press release said that the decision will result in the loss of 110 employee positions at the Surrey plant, which produces steel wire for various industrial applications. "Bekaert has observed a downward movement in the market for these product lines in the Northwest of the North American market, leading to a structural production overcapacity in the relevant market segments. In addition, aggressive competition from Asian countries is putting continuous pressure on sales prices."
Those external developments, the release said, "have had a strong negative impact on the profitability of Bekaert Canada Limited and on the competitive position of the respective operations in the North American market, calling for a realignment of the production platform in that region." It added that while the decision was difficult, management "sees no other option to safeguard a long-term competitive position of its steel wire activities in North America."
Bekaert intends to continue to serve its customers and markets in North America from its other North American manufacturing sites, the release said.