Exel initially communicated its intention to expand operations in Austria in February 2015. The project was put on hold in 2016 due to a weaker market situation at the time. The project will now resume with the finalisation of permitting and design.
The total cost of the project is estimated to be €7 million. The investment is intended to be financed with a bank loan, said Exel Composites in a media statement.
“The capacity of the old Kapfenberg facility has for some time already limited further growth for Exel in Central Europe. The new facility will enable a considerable increase in Exel’s production capacity and improve our ability to serve customers especially in the Industrial Applications customer segment,” said Riku Kytömäki, president and CEO of Exel.
The leasing agreement of the current facility will terminate at the end of 2020 at the same time when the construction of the new facility is expected to be completed. (PC)
Fibre2Fashion News Desk – India