2014 Nonwovens Sales: $252 million
Frantisek Rezac, CEO; Frantisek Klaska, CTO; Marian Rasik, CFO
Znojmo and Bucovice,Czech Republic; 6th of October City in Egypt
Spunbond, meltblown, SMS, bicomponent
Hygiene, agriculture, healthcare, ecology, furniture, building, protective apparel, industrial
Spunmelt maker Pegas Nonwovens reported record sales in 2014 thanks to the full commercialization of its Egyptian line, the company’s first foreign venture, as well as continued usage of its nine lines in the Czech Republic.
The Egyptian line, Pegas’ first operation outside of the Czech Republic, was completed in July 2013 and began commercial production in January 2014. Pegas announced the new site in 2011, saying expansion into new geographies would allow it to increase its global profile and the Egyptian location would provide it with access to the Middle East and Africa. The line can make 20,000 tons of materials per year.
“We are very satisfied with the performance of our Egyptian line,” says Jan Židek, spokesperson of Pegas. “It successfully ran in standard commercial production mode for the entire year 2014 and met our expectations. In terms of operating parameters, the production line is achieving parameters comparable to the production lines in the Czech Republic.”
The investment represented an important milestone for Pegas, he continues. “The proximity of the production plant to the sea gives us greater flexibility and extends our delivery radius,” he adds. “From Egypt, we can reach the Middle East, Africa and Asia, as well as Europe.”
Executives did not comment on immediate plans for a second line at the site, a long-term plan that was announced along with the original expansion plan.
Meanwhile, in Europe, where the majority of both Pegas’ sales and production occurs, sales remain constant, Židek explains. While the success of the Egyptian line has lessened the percentage of European sales to about 75%, sales continue to grow in the region thanks to efforts toward optimizing existing capacity and focusing on research and development efforts.
Pegas has not added to its European capacity since mid-2011, and this new capacity was soon fully booked.
“These operations provide a stable performance,” Židek says. “We focus on research and development of new products and also continuously make steps to optimize the production processes. We do not comment on plans to expand our operations because such information would anyway be subject to a special regime and would need to be disclosed in accordance with applicable laws and stock market regulations.”
Currently, about 90% of Pegas’ output targets the hygiene market where the materials are used in diapers, fem care and adult incontinence product. The company remains committed to the hygiene market because its feels it has an edge in this segment due to its vast knowledge and experience.
“One of our strengths is a very narrow relationship with the customer which enables us to specifically address the client’s needs and come up with solutions that bring benefits to our customers,” says Židek. “Also, in terms of the quality, we fulfill the strict requirements and demands of our clients, which is extremely important especially in hygiene.”