Gamma Holdings Consolidates and Forms Bekaert Decoration Textiles

January 8, 2000

Oudenaarde, Belgium - Bekaert Decoration Textiles N.V. (BDT) is the name of the newly formed group within the Gamma Holdings Company that encompasses the former individual Belgian production units St Hubert, Bekaert Wall Coverings and Cyr Cambier. Commercial headquarters, creation, showrooms and weaving production of the three companies are now being centralized in new facilities in Oudenaarde. The consolidation began in October 1999 and should be completed by the end of 2000. After the merger, BDT will offer complete ranges of decoration fabrics for both residential and contract markets. Upon the completion of the restructuring at the end of 2000, the group will have invested several million dollars. The joint 1998 turnover of the new decorative textiles group will reach around $45 million.

Bekaert St Hubert has moved its weaving, creation and commercial departments to the new premises in Oudenaarde, where Cyr Cambier, a production plant of another Gamma Holding company, has already been for two years. Space was made available there when the open end spinning division of Cyr Cambier was moved to the major Bekaert plant in Waregem. Also, the mattress ticking division of Bekaert Textiles has its two Belgian plants in Waregem.

In the Oudenaarde plant, some 160 weaving looms are running in a five-shift system. Space is also reserved there for the sample production department.

Major investments for an additional production hall of 11,000 square meters are planned to begin in mid-2000. To strengthen the vertical integration, dyeing, preparation and finishing activities, which now are done at different locations, will be centralized here. BDT is also modernizing its equipment with annexed water purification installations.

The adjacent newly built two-story building accommodates commercial departments and sample rooms with a large common showroom.

''Certainly on the creative level we want to realize a cross-fertilizing that finally brings added value to all departments,'' said St Hubert Export Sales Manager Herman Tack. ''Right from the start we experienced much more synergism between the different creative teams than we had expected.''

Bekaert St Hubert is a producer of plain and jacquard woven fabrics for curtains and furnishings, home decoration and vertical and roller blinds. Bekaert Wall Covering is specialized in wide wall coverings, and Cyr Cambier produces fabrics for garments, home decoration, and outdoor and nursery fabrics.

Total 1998 turnover of Gamma Holding's home decoration fabrics group including also Texoprint, Kendix, L'o Schellens, Sanderson, Esta and Eijffinger was 131 million Euro. Contrary to the textile printers, the group of weavers could improve results as compared with the previous years.

Herman Tack is realistic about the present market situation. ''In Europe, the market for home decoration fabrics remains steady, with although some downgrading pressure. Sales to Eastern Europe countries are increasing again, recovering from the Russian financial crisis. The Middle East and Far East areas are still suffering but there are signs of improvement such as oil prices per barrel, and recovering financial trade and investments.

''Illegal copying however, especially by Syrian, Korean and Chinese producers continue to further disturb many markets badly.''

At the common stand of BDT and Bekaert Mattress ticking at Heimtextil (nr 9 1 C54) St Hubert will launch several new qualities, such as jacquard chenilles for dual purposes, cheaper classic ranges in poly/cotton, and cheaper fancy dobbies, checks and stripes in poly/cottons.



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