Pegas Nonwovens begins initial startup of Egyptian line

February 07, 2013 - Egypt

PEGAS NONWOVENS announces that it has reached further key milestones of the Egyptian production plant project. At the end of January the gross assembly of the production technology was completed and the plant was connected to the power grid. Work has now begun on the initial commissioning of the production line, where all its functions will be tested and fine tuned.

"We are delighted to have reached further important milestones of this project. Connecting the plant to the power grid was an essential step towards being able to commence the next stage of commissioning the line, which consists of starting up, testing and fine tuning the production technology. Of course, a new line is not only about technology but also about the personnel who will be operating it.

At the present time we are intensively training twenty of our Egyptian colleagues at our facilities in the Czech Republic and it gives us great pleasure to support their enthusiasm and active effort to quickly learn the production process. I am glad to be able to confirm that the project is proceeding according to the demanding schedule and that we continue to expect the production line to be operational in the third quarter of this year", said František Rezác, CEO and member of the Board of Directors of PEGAS NONWOVENS SA.

PEGAS NONWOVENS SA, société anonyme, is a holding company based in Luxembourg with operating companies based in Znojmo and Bucovice, Czech Republic. PEGAS NONWOVENS is a manufacturer of polypropylene / polyethylene nonwoven textiles for the hygiene, industrial, construction, agricultural, medical and other specialized sectors.

These textiles are primarily used for the manufacture of baby diapers, feminine hygiene and adult incontinence products. The Company is active in developing new products demanded by the market and thereby maintains its position of technology leader in the European nonwovens market. PEGAS NONWOVENS currently has more than 440 employees.

Basic information about the Egyptian production plant project:
The production plant is located in the industrial zone near the City of 6th October near Cairo. The first line should have an annual capacity of approximately 20 thousand tones (depending on the product portfolio) and it is expected to be put into operation during the course of the third quarter of 2013.

If the market conditions in the region are positive, the Company expects to expand the plant by a second production line in the years 2015-2016, which would increase the total annual capacity of the Egyptian plant to 45-50 thousand tonnes. PEGAS has, by means of an agreement with a major customer, secured demand for the majority of its production volume coming from the Egyptian production plant.