Avgol Nonwoven Industries has released an update of company progress with increased sales and profits for 2005 and projecting substantial growth for 2006. Nir Peleg, CEO, has predicted that 2005 sales will exceed $160 million with increased net profits compared to 2004, despite significant raw material cost pressures throughout 2005.
These increases will largely be achieved through the successful startup—in October 2005—of its third North American Reicofil 3 SSMMS 4.2 meter line in Mocksville, NC. Sales demand for the 10-13.5gsm products produced on this line are meeting the company’s expansion plan requirements, and Avgol now produces more than 50% of its total 88,000 metric tons capacity in the U.S. Additionally, Avgol operates a new Reicofil 3 SMXS 3.2 meter line up and running at HGD/AVGOL, its JV in Hubei Province, PR China, as well as five spunmelt lines in Israel.
According to Avgol executives, the next step of the company’s expansion will occur in Eastern Europe where it is already scouting out locations for a plant to serve hygiene markets in this region.