09.01.11
Znojmo, Czech Republic
www.pegas.cz
2011 Nonwovens Sales: $203 million
Key Personnel: Frantisek Rezac, CEO; Frantisek Klaska, technical director; Marian Rasik, CFO; Rostislav Vrbacky, production director
Plants: Znojmo and Bucovice, Czech Republic
Processes: Spunbond, meltblown, SMS, bicomponent
Major Markets: Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel, industrial
As it awaits the startup of its first foreign investment, an Egyptian production facility, Czech Republic-based Pegas Nonwovens reported an impressive 12% jump in sales last year. Growth was attributed largely to the year-on-year increase of polymer prices and the startup of the company’s latest Czech production line, which began operation during the third quarter. At the same time, earnings measured by EBITDA increased 2.4% thanks largely to the new product line, which offset a slowdown in demand in the European nonwovens industry during the last quarter of the year.
Currently, the majority of Pegas’ business is conducted in the broader European area but growth is expected to come in developing regions—something the company has prepared for by investing in the aforementioned Egyptian manufacturing site, which is set to become operational in the second half of 2013, according to CEO Frantisek Rezac. “To date, the entire project is proceeding according to the time schedule,” he says. “The new line moves the company from its current position as a major European nonwoven textile manufacturer to a company with a more global scope of operation and a focus on fast growing developing markets.”
Already, Pegas is considering a second line at the site in 2015-16, although no final decision will be made on this investment until closer to the date.
For now, all of Pegas’ nonwovens are made on nine lines at two plants in the Czech Republic. The company’s latest line came on-line on schedule during the second half of 2011, featuring the most advanced technology that Pegas has had at its disposal to date and will strengthen its position as one of the technological leaders in the nonwoven textile production segment. “Apart from increasing our production capacity of ultra-light materials, this technology makes it possible for us to offer our customers new bicomponent nonwoven textiles and other special materials, which are planned to go into commercial production this year and in the years ahead,” Rezac explains.
Reporting that the company sold out nearly 100% of its capacity this year, including the new line, Rezac adds that he is not phased by the onslaught of spunmelt capacity coming on-stream to target the global hygiene market. “The majority of Pegas’ business is done in the broader European area where supply and demand is more or less balanced with just a minor overcapacity,” Rezac says. “New capacity installations should not significantly impact Europe but rather other regions, so we do not expect any changes in our core markets in the short or medium term. Besides, transportation costs to some extent limit the possibilities of imports into Europe.”
Currently, 52.7% of its sales are conducted in Western Europe while 43.5% are targeted at Central and Eastern Europe and Russia. Only 3.8% of sales are made beyond Europe, a percentage that will increase once the Egyptian site comes on-stream.
“Pegas has in-depth knowledge and know-how in the business environment in the Czech Republic and Europe as a whole,” Rezac notes. “Indeed, the new localization of a production facility outside of the Czech Republic has brought on new challenges.”
To meet these challenges, Pegas will rely on its expertise in constructing new facilities and production lines and will hire qualified local personnel to operate them. Now, as the company gets its feet wet with global expansion, it will continue to look for investment opportunities to fuel its growth, as well as its expansion outside of the Czech Republic. “The aim of the company is to follow its key customers to areas of their production facilities expansion,” Rezac explains. “We perceive the Egyptian project as a good ground for further projects of similar scope, however, at the moment we have to successfully finish this first project.”
www.pegas.cz
2011 Nonwovens Sales: $203 million
Key Personnel: Frantisek Rezac, CEO; Frantisek Klaska, technical director; Marian Rasik, CFO; Rostislav Vrbacky, production director
Plants: Znojmo and Bucovice, Czech Republic
Processes: Spunbond, meltblown, SMS, bicomponent
Major Markets: Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel, industrial
As it awaits the startup of its first foreign investment, an Egyptian production facility, Czech Republic-based Pegas Nonwovens reported an impressive 12% jump in sales last year. Growth was attributed largely to the year-on-year increase of polymer prices and the startup of the company’s latest Czech production line, which began operation during the third quarter. At the same time, earnings measured by EBITDA increased 2.4% thanks largely to the new product line, which offset a slowdown in demand in the European nonwovens industry during the last quarter of the year.
Currently, the majority of Pegas’ business is conducted in the broader European area but growth is expected to come in developing regions—something the company has prepared for by investing in the aforementioned Egyptian manufacturing site, which is set to become operational in the second half of 2013, according to CEO Frantisek Rezac. “To date, the entire project is proceeding according to the time schedule,” he says. “The new line moves the company from its current position as a major European nonwoven textile manufacturer to a company with a more global scope of operation and a focus on fast growing developing markets.”
Already, Pegas is considering a second line at the site in 2015-16, although no final decision will be made on this investment until closer to the date.
For now, all of Pegas’ nonwovens are made on nine lines at two plants in the Czech Republic. The company’s latest line came on-line on schedule during the second half of 2011, featuring the most advanced technology that Pegas has had at its disposal to date and will strengthen its position as one of the technological leaders in the nonwoven textile production segment. “Apart from increasing our production capacity of ultra-light materials, this technology makes it possible for us to offer our customers new bicomponent nonwoven textiles and other special materials, which are planned to go into commercial production this year and in the years ahead,” Rezac explains.
Reporting that the company sold out nearly 100% of its capacity this year, including the new line, Rezac adds that he is not phased by the onslaught of spunmelt capacity coming on-stream to target the global hygiene market. “The majority of Pegas’ business is done in the broader European area where supply and demand is more or less balanced with just a minor overcapacity,” Rezac says. “New capacity installations should not significantly impact Europe but rather other regions, so we do not expect any changes in our core markets in the short or medium term. Besides, transportation costs to some extent limit the possibilities of imports into Europe.”
Currently, 52.7% of its sales are conducted in Western Europe while 43.5% are targeted at Central and Eastern Europe and Russia. Only 3.8% of sales are made beyond Europe, a percentage that will increase once the Egyptian site comes on-stream.
“Pegas has in-depth knowledge and know-how in the business environment in the Czech Republic and Europe as a whole,” Rezac notes. “Indeed, the new localization of a production facility outside of the Czech Republic has brought on new challenges.”
To meet these challenges, Pegas will rely on its expertise in constructing new facilities and production lines and will hire qualified local personnel to operate them. Now, as the company gets its feet wet with global expansion, it will continue to look for investment opportunities to fuel its growth, as well as its expansion outside of the Czech Republic. “The aim of the company is to follow its key customers to areas of their production facilities expansion,” Rezac explains. “We perceive the Egyptian project as a good ground for further projects of similar scope, however, at the moment we have to successfully finish this first project.”