Bekaert meets its customer needs by developing products which ensure that solutions last longer and reduce the environmental impact. Our metal fibers for filtering fine particulates from diesel truck exhausts have many advantages over ceramic filters. As well as removing the particulates, metal fiber filters also reduce fuel consumption and CO2 emissions. An added bonus is that they require hardly any maintenance.
Around 36% of Bekaert’s sales are generated in the automotive sector, making it our largest buyer. With often invisible steel cord and wire products, Bekaert is present in nearly all automobile components: under the hood, in the steering mechanism and power system, in the doors and windows, the wheel housing and bumper, and in the interior.
Our steel cord business makes up the lion’s share of sales in this sector. We supply to almost all of the world’s truck and passenger tire manufacturers, generating sales of 63% and 37% in these segments respectively. Approximately 75% is supplied to the replacement market, which is generally less subject to cyclic fluctuations than the OEM market. Thanks to the strong automotive growth drivers of the BRIC countries and our solid presence in after-sales markets, especially tires, we remained resilient in 2009 on a global scale.
The automotive sector is evolving at an extremely high pace from national markets and national manufacturing to global manufacturing for increasingly global markets. All major OEM and car manufacturers are present in every region in the world, in mature and in emerging markets. In the latter, the passenger car has become a fast-growing consumer good. The same quality brand of materials and products around the world is key for many OEMs. Bekaert’s global presence and quality standards support these needs. Our worldwide technological leadership in metal transformation provides us with the same quality solutions for the hundreds of different applications on various continents.
Consumer preferences are changing rapidly: the global demand for small and basic cars is on the up. Increasingly stringent emission regulations are challenging the automotive sector too. Bekaert is catering to these trends with products that lower the environmental impact such as its medium for the filtration of diesel soot particles, heating cord, window film, steel wheel weights offering an alternative to lead and high tensile steel cord.
GDP growth, cost reduction, safety, comfort and environmental prescriptions are the main drivers of the automotive industry. Bekaert’s comprehensive innovation strategy provides us with all the tools to successfully exploit the many opportunities that arise. An example: some 34% of Bekaert’s sales of tire cord products are high-performance cords, specifically designed to meet the requirements of our customers for more cost-competitive, lighter tires, with a longer lifespan.