01.01.07
Location: Znojmo, Czech Republic
Sales: $152 million
Description: Key Personnel
Milos Bogdan, managing director, Frantisek Klaska, technical director; Frantisek Rezac, commercial director
Plants
Znojmo, Bucovice, Czech Republic
ISO Status
ISO-9001: 2000, ISO-14001: 1996
Nonwovens Processes
Spunbond, meltblown, SMS, BiCo
Major Markets
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel
Nonwovens sales increased 10.5% to reach €121 million for the Czech Republic’s largest nonwovens producer Pegas Nonwovens, thanks to a 6% increase in output, a larger reliance on specialty products and the passage of higher raw material prices to consumers. And, earnings growth has continued into 2007, with first quarter results up 6.1% compared to the prior year, thanks to higher sales volumes.
“Pegas is operating in a highly competitive market and therefore is constantly facing pressure from competition,” said Frantisek Klaska. technical director. “At the same time, Pegas is one of few producers in Europe of added-value specialty products using the most modern technology. Through its technological innovation, Pegas is maintaining its market position.”
In 2006, the bulk of Pegas’ nonwovens sales were conducted in the hygiene commodity market; however the percentage of sales in this market decreased from 72.3% in 2005 to 65.2% last year. Meanwhile, sales to hygiene specialty segments increased from 16.3% to 23.6% and non-hygiene sales remained essentially flat, according to Mr. Klaska. “These results confirm the company's focus on specialty production and sales,” he said.
Pegas currently produces 55,000 tons of spunmelt nonwovens on seven lines at two plants in the Czech Republic. Plans for an eighth line, which will add 15,000 tons of material per year to the company’s output, are already underway with a commercial launch expected for the fourth quarter of 2007. Like other Pegas lines, the new line will be based on Reicofil technology. “The European personal hygiene industry will remain the company's key target market. In addition, the company is further aiming to penetrate other markets, such as the medical market,” Mr. Klaska explained.
During the past five years, Pegas has benefited from growth in the European market for spunbond nonwovens aimed at hygiene, particularly on the specialty end. While this market is expected to remain most important to Pegas, executives have indicated that the company would like to benefit from growth in emerging markets such as Central and Eastern Europe, Russia and Turkey. In fact, Pegas has even hinted that it would, under the right circumstances, consider expanding its operations beyond the Czech Republic into other areas such as Russia.
Product diversification is another possibility for Pegas’ future growth strategy. “However, it is not so easy to start with new, different technology from point zero, we are investigating more combining two or more technologies together, but there are not concrete plans at the moment,” said Mr. Klaska.
Sales: $152 million
Description: Key Personnel
Milos Bogdan, managing director, Frantisek Klaska, technical director; Frantisek Rezac, commercial director
Plants
Znojmo, Bucovice, Czech Republic
ISO Status
ISO-9001: 2000, ISO-14001: 1996
Nonwovens Processes
Spunbond, meltblown, SMS, BiCo
Major Markets
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel
Nonwovens sales increased 10.5% to reach €121 million for the Czech Republic’s largest nonwovens producer Pegas Nonwovens, thanks to a 6% increase in output, a larger reliance on specialty products and the passage of higher raw material prices to consumers. And, earnings growth has continued into 2007, with first quarter results up 6.1% compared to the prior year, thanks to higher sales volumes.
“Pegas is operating in a highly competitive market and therefore is constantly facing pressure from competition,” said Frantisek Klaska. technical director. “At the same time, Pegas is one of few producers in Europe of added-value specialty products using the most modern technology. Through its technological innovation, Pegas is maintaining its market position.”
In 2006, the bulk of Pegas’ nonwovens sales were conducted in the hygiene commodity market; however the percentage of sales in this market decreased from 72.3% in 2005 to 65.2% last year. Meanwhile, sales to hygiene specialty segments increased from 16.3% to 23.6% and non-hygiene sales remained essentially flat, according to Mr. Klaska. “These results confirm the company's focus on specialty production and sales,” he said.
Pegas currently produces 55,000 tons of spunmelt nonwovens on seven lines at two plants in the Czech Republic. Plans for an eighth line, which will add 15,000 tons of material per year to the company’s output, are already underway with a commercial launch expected for the fourth quarter of 2007. Like other Pegas lines, the new line will be based on Reicofil technology. “The European personal hygiene industry will remain the company's key target market. In addition, the company is further aiming to penetrate other markets, such as the medical market,” Mr. Klaska explained.
During the past five years, Pegas has benefited from growth in the European market for spunbond nonwovens aimed at hygiene, particularly on the specialty end. While this market is expected to remain most important to Pegas, executives have indicated that the company would like to benefit from growth in emerging markets such as Central and Eastern Europe, Russia and Turkey. In fact, Pegas has even hinted that it would, under the right circumstances, consider expanding its operations beyond the Czech Republic into other areas such as Russia.
Product diversification is another possibility for Pegas’ future growth strategy. “However, it is not so easy to start with new, different technology from point zero, we are investigating more combining two or more technologies together, but there are not concrete plans at the moment,” said Mr. Klaska.