Sales: $150 million
Description: Key Personnel:
Milos Bogdan, managing director, Frantisek Klaska, technical director; Frantisek Rezac, commercial director
Znojmo, Bucovice, Czech Republic
ISO-9001: 2000, ISO-14001: 1996
Spunbond, meltblown, SMS, BiCo
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel
Sales reached €110 million for Pegas A/S, Central Europe’s largest nonwovens producer. Commercial director Frantisek Rezac attributed increases—sales clocked in at €75 million in 2004—to new capacity. Last year, the company brought its seventh spunbond production line, capable of producing approx. 15,000 tons of material annually, onstream. Like Pegas’ other lines, output from this Reifenhauser Reicofil line is mainly targeting hygiene markets in Western and Central Europe, including Russia.
And, Pegas has already announced its intent to build an eighth line, based on Reicofil 4 technology. Representing a reported €40 million investment, this new line will target hygiene applications as well as technical markets when it comes onstream next year, according to Mr. Rezac. “I think that we are looking for a balance between hygiene and non-hygiene markets,” he explained. “In the past we have dedicated a huge portion of our capacity to hygiene and now we are ready to focus also on other applications.”
Also in the headlines in 2005 was Pegas’ purchase by a U.K.-based private equity fund, Pamplona Capital Partners, in December.
Pegas’ current nonwovens output is 55,000 tons per year, and it will rise to 70,000 tons upon the completion of the new line. Currently, the bulk of Pegas’ sales are conducted in Europe, with an increasing share in Eastern Europe and the Russian market, but a significant part of capacity, mainly specialty products, is exported beyond Europe. “Pegas has the advantage of having some very modern technology and I think this can bring us some new territory in the future,” Mr. Rezac said.
While pricing levels in its key raw material component have presented challenges, there continues to be opportunity for spunmelt nonwovens in Europe, despite planned investments by some of Pegas’ competitors. “You have to keep investing if you want to be competitive,” Mr. Rezac said. “If you wait for a time when no one else is investing, you would never do it.”