Pegas Nonwovens starts production at Egyptian plant

July 17, 2013 - Egypt

PEGAS NONWOVENS announces that it has completed the start up process of its Egyptian production line and has successfully qualified the first materials with its customers.

The production line is now able to produce nonwoven textiles in the required quality and so it has been possible to make the first commercial deliveries. Concurrently, other materials are in the process of being qualified with the customers.

"I am pleased to confirm that we have now finished the demanding qualification process for several materials and have been able to commence our first commercial deliveries. At this point in time, we are focusing on the final optimisation of the production technology and the qualification of other materials so that we can handle the commercial production ramp up curve.

"We firmly believe that this crucial stage of the project will also go according to our expectations and that this production line will start contributing to the financial performance of the Company," said František Rezác, CEO and Member of the Board of PEGAS NONWOVENS SA.

The commissioning of the Egyptian production line is continuing according to the original schedule and the Company is not making any changes to its EBITDA guidance (a yoy increase of 5-15%) or to the produced tonnage forecast in 2013.

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 almost 550 employees.