Bekaert : announces decision to close Dramix® plant in Costa Rica 07 Sep 2018

Press release

Press - Investors Katelijn Bohez

7 September 2018

T [phone]www.bekaert.com

Bekaert Latin America Steven Parewyck

T [phone]

Bekaert announces decision to close Dramix plant in Costa Rica

The management of Bekaert has announced the decision to cease all Dramix steel fiber manufacturing operations in Orotina, Costa Rica, and to close the respective entity, Bekaert Costa Rica SA.

The management has informed the employees about the decision and has expressed its intention to offer guidance and support to mitigate the social impact. Among other initiatives, Bekaert plans to offer employment transfer for 20 part-time employees to the company's neighboring steel wire plant, BIA Alambres Costa Rica SA. The high cost base of the entity and increased competitive price pressure in the construction markets served in Latin America, have affected the plant's financial performance to a level that is no longer sustainable. The measures implemented in recent years to make the entity profitable have not been successful.

The management regrets to implement this measure, but sees no other option to safeguard its position in the respective Latin American steel fiber markets. The company will continue to serve customers in the region with Dramix steel fibers produced in other Bekaert entities in the world.

Bekaert in Costa Rica

Bekaert currently employs 147 people in two legal entities in Orotina: Bekaert Costa Rica SA (64 people) and BIA Alambres Costa Rica SA (83 people). The Bekaert Costa Rica SA entity is active in the production of Dramix steel fibers for concrete reinforcement. BIA Alambres Costa Rica SA produces steel wire products for agricultural fencing and construction markets. Both entities belong to the same partnership in which the Bekaert Ideal Holding (an 80/20 partnership between Bekaert and its Ecuadorian partners represented by members of the Kohn family) holds 73% of the shares and ArcelorMittal the remaining 27%.

About Bekaert

Bekaert(www.bekaert.com)is a world market and technology leader in steel wire transformation and coating technologies. We pursue to be the preferred supplier for our steel wire products and solutions by continuously delivering superior value to our customers worldwide. Bekaert (Euronext Brussels: BEKB) is a global company with 30 000 employees worldwide, headquarters in Belgium and € 4.8 billion in combined revenue.

Disclaimer

The foregoing release may contain forward-looking statements regarding the impact of the transaction on the financial statements of Bekaert. Such statements reflect the current views of management regarding future events, and involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Bekaert is providing the information in this press release as of this date and does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. Bekaert disclaims any liability for statements made or published by third parties and does not undertake any obligation to correct inaccurate data, information, conclusions or opinions published by third parties in relation to this or any other press release issued by Bekaert.

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