Annual Report 2012 Full version PDF Download - Bekaert

17 Latin America
Bekaert Annual Report 2012
Latin America
Latin America/Bekaert Ideal Holding
Subsidiaries under the Bekaert Ideal Holding
Bekaert holds 80% of the shares in Ideal Alambrec
(Ecuador), Vicson (Venezuela) and Proalco (Colombia).
Ecuador
The Ecuadorian economy is characterized by steady GDP
growth, mainly driven by the country’s strong oil extraction
industry. Public spending continued to be high in 2012
with social and logistic investments including infrastructure
and housing projects.
Bekaert’s subsidiary in Ecuador recorded stable sales
volumes in 2012. After a difficult first half, sales picked up,
especially in construction markets.
The Ideal Alambrec plant invested in cut & bend
equipment to further broaden its product offering in the
construction market.
Venezuela
Combined sales:
Consolidated sales(*):
Capital expenditures (PP&E)(*):
Total assets(*):
€ 1 690 million
€ 812 million
€ 29 million
€ 480 million
Employees: 7 700
(*) Consolidated entities
Continued consolidation in Latin America
In Latin America, a well balanced mix of markets and
products resulted in solid performance for the region in
2012. Peruvian and Venezuelan markets in particular
showed robust growth, while the business environment in
Colombia and Brazil continued to be highly competitive.
Early 2012 Bekaert and its Chilean partners announced
the successful closing of their shareholding transaction by
which Bekaert became the principal shareholder (52%) in
the partnership with operations in Chile, Peru and
Canada. As a consequence, Bekaert consolidates the
results of all respective entities since the start of 2012 in
the Group’s financial statements. In support of the growing
importance of the region in the Bekaert Group’s strategy
and results, Bekaert has established a regional
management office in Bogotá, Colombia in 2012.
Heavily driven by the oil sector, which accounts for 95
percent of exports, and stimulated through public
investments preceding the presidential elections in
October of 2012, Venezuela's economic growth ended
above the regional average. Persisting economic
imbalances and political risks associated with the country
are elements of uncertainty in assessing future economic
developments.
Bekaert’s subsidiary Vicson recorded exceptionally strong
growth in most markets served. However, a lack of wire rod
supplies led to activity losses and temporary production
shutdowns in the last quarter of 2012. Bekaert ensured
continuity of operations as much as possible, but carefully
watches the evolutions in this business environment which
is characterized by major currency-related uncertainties
and a regulated but instable supply of raw materials.
Bekaert continues to pursue solutions to optimally cover
the business continuity and currency risks, in full support of
its customers and of its dedicated team of 682 employees
in the country.
Colombia
The Colombian economy’s growth has slowed somewhat
due to a demand decline in export markets and a delay in
mining and energy investments.
Bekaert’ subsidiary, Proalco, saw its sales and results under
pressure from continued weak demand in agriculture
markets and the highly competitive and very fragmented
business environment.