Aanwezigheid van Bekaert in China'

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Bekaert in China
The Key-building blocks of our success,
yesterday and tomorrow.
Patrick De KeyzerGruzenberg8th May 2002
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Bekaerts presence in China
In the 80s (Export activity)
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Bekaerts investments in China.
From the 90s. (Direct investments)
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Bekaerts investments in China.

• 1. China Bekaert Steelcord Co., Ltd.
• Joint venture for the production of Steelcord.
• Location in Jiangyin, Jiangsu province(160 km
  away from Shanghai).
• Greenfield project.
• History
• December 1992 Signing of the contract.
• March 1993 Ground breaking.
• March 1994 Restructuring from 50/50 to 90/10.
• February 1995 Start of the production.
• Early 1996 Start expansion phase II.
• End 1997 Start expansion phase III.
• 1999 - 2002 Phase IV.

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Bekaerts investments in China.

• 2. Bekaert Asia Shanghai Office
• Representative office of Bekaert in China.
• Location in Shanghai.
• Set-up in 1994.
• 3. Bekaert Mechanical Engineering Co., Ltd.
• 100 Bekaert investment for the production of
  machine parts in support of our growth in Asia.
• Location in Jiangyin.
• Start-up at the end of 1996.

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Bekaerts investments in China.

• 4. Shanghai Bekaert Ergang Co., Ltd.
• Joint venture (70/30) for the production of
  Dramix.
• Greenfield project.
• Location in Shanghai export zone.
• Start-up mid 1998.
• 5. Bekaert Shenyang Steelcord Co., Ltd.
• Joint venture (80/20) for the production of
  steelcord.
• Location in Shenyang (North of China).
• Brownfield project via an asset deal.
• Start-up mid 1998.
• Nov 01 Restructuring from 80/20 to 98/2 share
  holding.

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Bekaerts investments in China.

• 6. Jiangyin Bekaert Wire Products Co., Ltd
• Joint venture (90/10) for the production of fine
  high carbon wires.
• Greenfield project.
• Location in Jiangyin.
• Start-up mid 2001.
• 7. Fasten Bekaert Optical Cable Co., Ltd.
• Joint venture (30/70) for the production of
  cable armouring wire.
• Location in Jiangyin.
• Greenfield project.
• Start-up mid 2001.

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Summary Bekaert in China
Wire
Steel Cord
B Korea Ltd.
BAM
Bekaert Asia Tokyo Office
B Shenyang
Hikari Corporation
Jiangyin Fasten-Bekaert Optical Cable Steel
Products Co
Bekinit Corporation
B- Jiangyin Wire Products Co
B Shanghai
B Industries Pvt.LtdB Fibre Techn New Delhi
China B Steel Cord Jiangyin
B Industries Pvt.LtdTaluka

• B Singapore
• Precision Surface Technology Pte. Ltd.

PT. Bekaert Indonesia Karawang
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Summary Bekaert in China

• 7 legal entities covering a wide range of
  products.
• Investment amounts to gt 150 Mio USD Large
  Belgian presence.
• of people gt 600.
• Focus on the local market and its growth.
• Keeps expanding in synchronisationwith the
  market development.

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Key building blocks of our success
Market
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Technology
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People
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Business environment
Success in the past and in the future
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Market (Steel Cord)

• Strong growth market with yearly double digit
  growth
• Growth of number of tires.
• Increase of radialization.
• Capacity build up in line with market demand
  reliable supplier (with back-up from other
  worldwide Bekaert capacities).
• Focus on the local market (i.s.o. export).
• Providing technological advanced solutions.
• High level of technical service.
• Play it straight from the beginning sales
  based on technical/quality/cost merits rather
  than

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Technology

• Chinese customers and partners want the latest
  technology!
• Capability to provide technological answers to
  their (many) questions.
• Very smooth technology transfer from Belgian to
  Chinese operations
• Extensive training of Chinese technicians and
  management in Belgium.
• Adequate start-up assistance by Belgian
  specialists.
• Availability of Bekaert Mechanical Engineering
  Co. on site to support the installation of
  Bekaert equipment.

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People

• Operations are run by local Management that
  have had previous international exposure
  allowing to bridge East and West.
• Intensive training.
• Technology.
• Exposure to Bekaert management concepts.
• People management is tailored to fit the local
  environment and expectations, e.g. remuneration
  systems, etc...
• Focus on continuous development of skills and
  competencies.
• Satisfies their eagerness to learn.
• Building loyalty with the company.

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(Local) Business Environment

• Partnership with the government and local
  authorities to
• Understand regulatory environment.
• Involvement at an early stage to gain support
  and favorable interpretations of rules and
  regulations.
• Matching objectives of your business with
  those of the authorities.
• Maintaining good relations is an integral part
  of running the business.
• Our JV partners have proven to be extremely
  helpfulin creating this business environment.

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