Bekaert cuts workforce by a quarter

Bekaert is restructuring its international operations too with 1,250 jobs to go in all.

Special works councils are being held to announce the job losses at three Belgian plants: Zwevegem, Aalter and Ingelmunster.

Trades unions had not anticipated the cuts: It's a bolt from the blue" says Gino Bels of the socialist union. "People say that they are downing tools and will be going home. I don't think there will be a lot of work done today."

387 jobs are going at Aalter over a two-year period. CEO Bert De Grave: "We want to reduce this plant to a specialised production platform for filament applications".

A further 100 jobs will disappear at the technology centre in Zwevegem. There too an additional 50 blue collar jobs are at risk. In Ingelmunster the figure is 70.

In addition to the job losses the company will also implement a cost-cutting operation in its international operations aimed at saving 100 million euros.

Bekaert says that the restructuring is needed to retain its competitive position. The demand for wire used in sawing has fallen and the price on the international market has plummeted too because of the arrival of new producers on the market.This type of wire is used to cut solar panels.

CEO Bert De Graeve: "The solar panel market first collapsed in Spain, our biggest customer. In Italy it's being scaled down. The Germans continue to change their subsidy policies that have been stopped entirely in Slovakia. The market in Flanders is now at a standstill."

Jobs will go in production, technology and engineering. In Belgium these activities are centred on stainless steel wire production.