Pegas Nonwovens to establish subsidiary in South Africa

Based on this analysis and other information gained over the last year, the Board of Directors has taken the decision to establish a subsidiary in the Republic of South Africa for the purpose of purchasing a specifically identified land parcel.

“The establishment of the company represents the beginning of a project, at the end of which, I firmly believe, will be another production plant built outside the boundaries of the Czech Republic. Together with the establishment of this company, we are starting to take steps that will lead to the purchase of the identified parcel and expect that the entire land purchase process will be formally completed during the next few months,” said Frantisek Rezac, CEO Pegas Nonwovens SA.

“We are considering utilising the latest production line based on the Compact concept, which, due to its lower overall investment costs, lower demands on infrastructure and lower capacity, represents a platform which is suitable for penetrating into new, especially developing markets. At the same time, we are also entering into negotiations with customers that have expressed an interest in cooperation in this region, with the objective of filling the production capacity of this new production line. Based on the results of these negotiations, we will decide about the purchase of a new production line no later than in the first half of 2017,” Rezac concluded. (NA)

Fibre2fashion News Desk - India