Pegas Nonwovens has announced that it is to invest in further production capacity and has already contracted with Reifenhäuser Reicofil GmbH & Co. KG for the supply of the spunbonding technology. The EUR 50 million investment in the new 9th production line will be carried out through Pegas’ subsidiary Pegas - NS a.s. and the facility will be located in Znojm, PÅ™ímÄ›tice, Czech Republic.

The Reicofil 4 type production line will produce materials mainly for the hygiene segment with the option of production for other applications. Pegas says the new production line will enable the expansion of the company's annual production capacity by up to 20 thousand tonnes, depending on the products manufactured. The company expects to launch the new line in the second half of 2011.

"The decision of the Company confirms the company's strategy to expand its capacity through investment in the latest technology. We believe that the new line, which will be Pegas' most technologically advanced yet, will strengthen our position as the technological leader in the field of nonwoven textile production and will open a new window of opportunity for mutual cooperation with our customers, with an even stronger focus on ultra light materials, new bicomponent applications and other new materials that are planned to go into commercial production between 2012 and 2014," said František Řezáč, CEO of PEGAS NONWOVENS s.r.o and member of the Pgas Nonwovens SA Board of Directors.