The security situation in the City of 6th of October, where the new production plant is located, continues to remain calm. The decision to suspend operations was taken in an attempt to ensure maximum level of safety for the Company's employees.
"With respect to the escalating tensions in the country, the transport of workers to the production plant presented an unnecessary level of risk that we do not wish to undertake.
"The date for resuming operation of the production line will depend on further developments of the Egyptian crisis. We can only hope that the situation will stabilise in the near future and that the country will return to normal", said František Rezác, CEO and Member of the Board of PEGAS NONWOVENS SA.
The production line is currently in trial operation and therefore the decision to shut it down temporarily does not have a significant effect on this year's planned production in tonnes.
In the event that the shutdown should have a longer duration and there were a risk of delay in the startup of full production, which is planned in the course of the fourth quarter of this year, PEGAS will provide information about the impact of this on its financial results. At the current time, the Company is not adjusting its EBITDA guidance (yoy increase of 5- 15%).