Pegas to Add New Czech Line, Mulls Expansion to South AfricaBy
The producer of non-woven textiles picked its home plant in the southern Czech city of Znojmo over its facility in Egypt to install the new line with a capacity of around 10 kilotons per year, Pegas said in a statement on Thursday. The move is motivated by rising demand in Europe and a shortage of Czech production capacities, as well as the governments’ investment incentives, the company said.
The board also decided to set up a subsidiary in South Africa and to start talks on purchasing land for a potential construction of a production facility there. Pegas is entering talks with future customers in the region and will decide whether to invest in a new production line there in the first half of next year at the latest, according to the statement.
Pegas shares fell 2.5 percent to 790 koruna on Wednesday in Prague, paring its gains this year to 8.1 percent and valuing the company at 7.3 billion koruna ($303.9 million).
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