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Nonwovens producer PEGAS to build new production line

09
Mar '10
PEGAS NONWOVENS SA announces that the Company's Board of Directors has made the decision to commence with the construction of a new production facility. In connection with this decision the Company also announces that it has entered into a contract with the general supplier of the production technology Reifenhäuser REICOFIL GmbH & Co. KG.

The investment in the new 9th production line will be carried out through the subsidiary PEGAS – NS a.s. and the facility will be located in Znojmo – Prímetice, Czech Republic. The REICOFIL 4 type production line will produce materials mainly for the hygiene segment with the option of production for other applications.

The total invested amount in the new facility will not exceed EUR 50 million. The new production line will enable the expansion of the Company's annual production capacity by up to 20 thousand tonnes (depending on the product portfolio). The Company expects to launch production on the line in the second half of 2011.

"The decision of the Company confirms the Company's strategy to expand its capacity through investment in the latest technology. We believe that the new line, which will be PEGAS' most technologically advanced yet, will strengthen our position as the technological leader in the field of nonwoven textile production and will open a new window of opportunity for mutual cooperation with our customers, with an even stronger focus on ultralight materials, new bicomponent applications and other new materials that are planned to go into commercial production between 2012 and 2014," said František Rezác, member of the PEGAS NONWOVENS SA Board of Directors and CEO of PEGAS NONWOVENS s.r.o.

PEGAS NONWOVENS s.r.o.


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