01.01.09
Location: ZNOJMO, CZECH REPUBLIC
Sales: $209 Million
Description: Key Personnel
Frantisek Rezac, Chief executive officer; Frantisek Klaska, Technical director; Ales Gerza, Chief financial officer; Rostislav Vrbacky, Production director
Plants
Znojmo, Bucovice, Czech Republic
ISO Status
ISO-9001: 2000, ISO-14001: 2004, ISO-9004: 2004
Nonwovens Processes
Spunbond, meltblown, SMS, BiCo
Major Markets
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel, industrial
Sales at the Czech Republic-based Pegas increased an impressive17.1% to €142.8 million last year thanks to increased usage of itslatest nonwovens line, launched in November 2007.
“The launch of the new production line was the most importantevent for Pegas in respect to the 2008 financial results,” saidPegas CEO Frantisek Rezac. “The year-on-year increase in salesand EBITDA was driven primarily by this new line. The line metexpectations and was operating at maximum capacity.”
The new line, Pegas’ eighth, is a 15,000-ton-per-year, 3.2-meter-wide Reicofil SSMMMS line, which increased its capacityby 28%.
In 2008, EBITDA amounted to €39.5 million, up 2.9%from the previous year as a result of higher sales of finishedgoods due to the additional production capacity. The mainfactors negatively impacting the total EBITDA in 2008 werelower sales of materials to the construction industry, theappreciation of the Czech koruna, higher energy costs andmargin developments in the European nonwovens market,Mr. Rezac added.
In 2009, earnings growth has increased significantly already,up 33.8% in the first quarter thanks to extremelylower polymer prices, output prices reflecting polymerprices at the higher level and the successful sale of finishedgood stock held over from the end of 2008.
“However, these three factors will not be repeated in such apositive way in subsequent quarters,” he continued. “Due to continuinggood demand, we are confident that we will maintain bothproduction and sales volumes at good levels for the remainder of2009.
While Pegas has received a decision concerning investmentincentives for a ninth line from the Ministry of Industry andTrade of the Czech Republic, the final decision on when tobuild this new line is still subject to market conditions. Mr.Rezac said the final decision should be made in the next coupleof months.
“We still see some overcapacity in the (European) market, howeverthe overall situation is very unclear at the moment and thereforeany in-depth assessment is not possible. We continue to facethe challenges of the market through development of new products,cost control and increases of production efficiency,” he said.
Currently, 97% of Pegas’ sales are done in Europe, 56% ofwhich are sold in Western Europe. Eighty-seven percent of its totalsales are in the hygiene market where Pegas differentiates itselfwith technologically advanced materials—soft, ultra-lightweightand bicomponent textiles—which are difficult to produce. Othermarkets for Pegas include medical, construction, agriculture, furniture,wipes etc.
Moving forward, Pegas will continue to focus on technologicallyadvanced materials, fostering close relationships with customersand suppliers, maintaining superior financial performanceand monitoring investment opportunities. And, while up to now,all of its output is centered on Reicofil spunmelt lines, the companywould not be adverse to diversification if the right technologywere presented.
“We achieved significant position on the market using Reicofiltechnology, however we are closely monitoring the market situationand its trends. If we discover other opportunities, we are readyto react accordingly,” Mr. Rezac concluded.
Sales: $209 Million
Description: Key Personnel
Frantisek Rezac, Chief executive officer; Frantisek Klaska, Technical director; Ales Gerza, Chief financial officer; Rostislav Vrbacky, Production director
Plants
Znojmo, Bucovice, Czech Republic
ISO Status
ISO-9001: 2000, ISO-14001: 2004, ISO-9004: 2004
Nonwovens Processes
Spunbond, meltblown, SMS, BiCo
Major Markets
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel, industrial
Sales at the Czech Republic-based Pegas increased an impressive17.1% to €142.8 million last year thanks to increased usage of itslatest nonwovens line, launched in November 2007.
“The launch of the new production line was the most importantevent for Pegas in respect to the 2008 financial results,” saidPegas CEO Frantisek Rezac. “The year-on-year increase in salesand EBITDA was driven primarily by this new line. The line metexpectations and was operating at maximum capacity.”
The new line, Pegas’ eighth, is a 15,000-ton-per-year, 3.2-meter-wide Reicofil SSMMMS line, which increased its capacityby 28%.
In 2008, EBITDA amounted to €39.5 million, up 2.9%from the previous year as a result of higher sales of finishedgoods due to the additional production capacity. The mainfactors negatively impacting the total EBITDA in 2008 werelower sales of materials to the construction industry, theappreciation of the Czech koruna, higher energy costs andmargin developments in the European nonwovens market,Mr. Rezac added.
In 2009, earnings growth has increased significantly already,up 33.8% in the first quarter thanks to extremelylower polymer prices, output prices reflecting polymerprices at the higher level and the successful sale of finishedgood stock held over from the end of 2008.
“However, these three factors will not be repeated in such apositive way in subsequent quarters,” he continued. “Due to continuinggood demand, we are confident that we will maintain bothproduction and sales volumes at good levels for the remainder of2009.
While Pegas has received a decision concerning investmentincentives for a ninth line from the Ministry of Industry andTrade of the Czech Republic, the final decision on when tobuild this new line is still subject to market conditions. Mr.Rezac said the final decision should be made in the next coupleof months.
“We still see some overcapacity in the (European) market, howeverthe overall situation is very unclear at the moment and thereforeany in-depth assessment is not possible. We continue to facethe challenges of the market through development of new products,cost control and increases of production efficiency,” he said.
Currently, 97% of Pegas’ sales are done in Europe, 56% ofwhich are sold in Western Europe. Eighty-seven percent of its totalsales are in the hygiene market where Pegas differentiates itselfwith technologically advanced materials—soft, ultra-lightweightand bicomponent textiles—which are difficult to produce. Othermarkets for Pegas include medical, construction, agriculture, furniture,wipes etc.
Moving forward, Pegas will continue to focus on technologicallyadvanced materials, fostering close relationships with customersand suppliers, maintaining superior financial performanceand monitoring investment opportunities. And, while up to now,all of its output is centered on Reicofil spunmelt lines, the companywould not be adverse to diversification if the right technologywere presented.
“We achieved significant position on the market using Reicofiltechnology, however we are closely monitoring the market situationand its trends. If we discover other opportunities, we are readyto react accordingly,” Mr. Rezac concluded.