"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," said František Řezáč, CEO and Member of the Board of Pegas Nonwovens.

Compromising growth

Pegas Nonwovens has been planning to ramp up production this year at the facility 35 km outside Egypt's capital. J&T Banka analysts said that any long delay in opening the line could compromise the company's target for growth in earnings before interest, tax, depreciation and amortisation of 5 –15% this year.

However, according to the company, 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.

Pegas Nonwovens

The company, established in 1990, was initially focusing on a production of nonwoven textiles. In 2002 the company's product range was extended by the production of bi-component nonwoven fabric on the basis of polypropylene and polyethylene.

Since its establishment, the company has gone through major development where the originally first established plant in Bučovice was supplemented by a second production plant in PÅ™ímÄ›tice (Znojmo).

Today the company is an active member of EDANA, European association of nonwoven fabric manufacturers, and has a total production capacity of the Company is about 70 thousand tons of nonwoven fabric per annum.

www.pegas.cz