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Joint venture announced between Belgian conglomerate and local company

A joint venture between Bekaert, an independent manufacturer of steel wire products and Bastion Wire (formerly the local distributors for Bekaert fencing products in South Africa) and Sagentra Trade Corporation (a well established local export-oriented trading house) was announced recently. The new company is called Bekaert Bastion Fencing Systems (Pty) Ltd.

With an annual turnover of EUR 2,5bn (R17,5bn), Bekaert is a technology-driven group pioneering steel and metal transformation and coating technologies. The group's founder, Leo Leander Bekaert, invented barbed wire in 1880 to keep cattle from roaming across farmland; the group has been setting international standards for steel manufacturing ever since.

Bekaert currently imports substantial volumes of SA steel for processing into wire products by Bekaert's operations around the world. The joint venture with Bastion is a significant part of Bekaert's international expansion programme particularly as this is the group's first venture in Africa.

Impact of the merger

Bekaert Bastion estimates that the high security market in South Africa is currently worth approximately R250m and that this is forecast to double within the next year. Foreign investment and an aggressive growth plan will not only help boost the local economy but propel Bekaert Bastion to pole position in the highly competitive security industry. The immediate investment, worth around R10m, is the confirmed order for and current installation of highly specified, state-of-the-art, plant and machinery to produce some of the Belgian group's fencing products locally. This will enable the company to offer an extensive range of superior quality Bekaert high security fencing and allied products at more competitive prices. Bekaert Bastion products worth around R1m were installed recently at Kokstad Supermax Prison. The new company has already been awarded its first contract worth R2m - for high security mesh fencing at the Union Buildings in Pretoria. Local and export tenders worth a total of R50m are awaiting confirmation.

For more details contact Karey Evett on (021) 461 0683; e-mail: [email protected]

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