"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," says Frantisek Rezac, CEO and member of the board of Pegas Nonwovens SA. "At this point in time, we are focusing on the final optimization 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."
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 year-on-year increase of 5-15%) or to the produced tonnage forecast in 2013.
Earlier month, the Czech-based Pegas, which announced it would invest in Egypt in 2010, said it was closely monitoring developments in Egypt in light of recent tensions in the country. The new plant is located about 80 miles from Cairo in an areas described as calm and not under a direct threat.