01.01.05
Location: Znojmo, Czech Republic
Sales: $93 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
Major Markets:
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel
Sales reached €75 million in 2004 for Central Europe’s largest nonwovens producer Pegas A/S. Among the year’s highlights was the completion of a seventh spunbond production line at its Znojmo, Czech Republic facility. Capable of producing 15,000-17,000 tons per year, the new line is based on Reifenhauser Reicofil technology to increase Pegas’ flexibility. Output from the new line, like Pegas’ other lines, have initially targeted hygiene markets in Central and Eastern Europe.
The new line, which began operation in early 2005, brings Pegas’ total nonwovens output to 55,000 tons per year. Currently, the bulk of Pegas’ sales are conducted domestically, in its neighboring countries of Slovakia, Poland and Hungary and in Western Europe. While pricing levels in its key raw material component have presented challenges, undersupply levels in spunbond material in Europe have presented opportunities, according to commercial director Frantisek Rezack. “Raw material increases have had some impact and someone has had to pay for it but there is also a capacity shortage in Europe right now, which has opened up the market somewhat,” he said.
While nearly 90% of its nonwovens output is sold into the hygiene market, Pegas opted for the Reicofil 4 line because of its flexibility. “We have the intention of finding more possibilities and business fields beyond hygiene but so far it has not had any results.”
One area of interest is in bicomponent materials that will not only add value to spunmelt nonwoven substrates but will also lessen the suppliers’ reliance on a single raw material. “Beyond commodity products, you also have to produce specialties,” Mr. Rezack said. “We don’t know the right ratio between the two but we are focused in that direction. You have to continue to invest in new lines. You have to step up or you won’t survive.”
In 13 years, Pegas has erected seven lines, an impressive growth rate by any industry standards. The company has not yet unveiled a plan for an eighth production line but executives indicated that room for one does exist in its Znojmo site.
“All of our lines were state-of-the-art when we added them. Every line has been able to produce something special, something better than before,” said Mr. Rezack. “This is why we have always been able to sell all of our capacity.”
Beyond new construction, Pegas is also exploring the possibility of modifying older lines to target specialty applications, a measure that would save money and diversify the company’s output.
Also keen on the company’s radar is quality control and efforts in that area have been stepped up considerably in recent years. “All of our product lines are focused on quality,” Mr. Rezack explained. “This can minimize risk and increase waste but most importantly it can help in customer relations. A customer does not want to hear any problem or have any questions when it comes to the quality of the product they are buying.”
Sales: $93 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
Major Markets:
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel
Sales reached €75 million in 2004 for Central Europe’s largest nonwovens producer Pegas A/S. Among the year’s highlights was the completion of a seventh spunbond production line at its Znojmo, Czech Republic facility. Capable of producing 15,000-17,000 tons per year, the new line is based on Reifenhauser Reicofil technology to increase Pegas’ flexibility. Output from the new line, like Pegas’ other lines, have initially targeted hygiene markets in Central and Eastern Europe.
The new line, which began operation in early 2005, brings Pegas’ total nonwovens output to 55,000 tons per year. Currently, the bulk of Pegas’ sales are conducted domestically, in its neighboring countries of Slovakia, Poland and Hungary and in Western Europe. While pricing levels in its key raw material component have presented challenges, undersupply levels in spunbond material in Europe have presented opportunities, according to commercial director Frantisek Rezack. “Raw material increases have had some impact and someone has had to pay for it but there is also a capacity shortage in Europe right now, which has opened up the market somewhat,” he said.
While nearly 90% of its nonwovens output is sold into the hygiene market, Pegas opted for the Reicofil 4 line because of its flexibility. “We have the intention of finding more possibilities and business fields beyond hygiene but so far it has not had any results.”
One area of interest is in bicomponent materials that will not only add value to spunmelt nonwoven substrates but will also lessen the suppliers’ reliance on a single raw material. “Beyond commodity products, you also have to produce specialties,” Mr. Rezack said. “We don’t know the right ratio between the two but we are focused in that direction. You have to continue to invest in new lines. You have to step up or you won’t survive.”
In 13 years, Pegas has erected seven lines, an impressive growth rate by any industry standards. The company has not yet unveiled a plan for an eighth production line but executives indicated that room for one does exist in its Znojmo site.
“All of our lines were state-of-the-art when we added them. Every line has been able to produce something special, something better than before,” said Mr. Rezack. “This is why we have always been able to sell all of our capacity.”
Beyond new construction, Pegas is also exploring the possibility of modifying older lines to target specialty applications, a measure that would save money and diversify the company’s output.
Also keen on the company’s radar is quality control and efforts in that area have been stepped up considerably in recent years. “All of our product lines are focused on quality,” Mr. Rezack explained. “This can minimize risk and increase waste but most importantly it can help in customer relations. A customer does not want to hear any problem or have any questions when it comes to the quality of the product they are buying.”