Pegas Nonwovens has received a decision on investment incentives for a new production line scheduled to be built by its operating subsidiary Pegas NS. The Ministry of Industry and Trade of the Czech Republic, where Pegas is based, has granted Pegas NS approval on corporate income tax relief for a period of 10 years as well as financial support for job creation.
According to the decision, the total amount of incentives may not exceed 30% of the total investment. Simultaneously, the total amount of the public grant may not be higher than CZK403.5 million and commercial production must be launched within three years of the ministry’s decision.
Total investment costs of Pegas’ ninth production line project will not exceed €50 million and the execution of the project will depend on the development of conditions in the nonwovens industry, according to the company.