Italian group Pirelli has agreed to sell its steelcord business to Belgium's Bekaert in a deal worth around EUR 255 million. The transaction also includes operations in Romania, at the Slatina factory. Four other factories in Turkey, Italy, China and Brasil are included in the deal.

In Romania, Pirelli also owns a tire factory in Slatina, and a factory manufacturing filters for diesel engines in Bumbesti Jiu. These two factories are not covered by the recent deal.

The transaction will enable Pirelli to exit a business where it lacks competitive scale and focus resources on its higher-margin premium tire activities and in the meantime assure a future for its steelcord activities within a group which is a technology leader in steel wire transformation and coatings, according to the company.

Bakaert, which has 27,000 employees in 120 countries, reported EUR 4.1 billion in sales in 2013.

editor@romania-insider.com