Pegas Nonwovens, the Czech Republic headquartered manufacturer of polypropylene/polyethylene nonwoven textiles for the hygiene, industrial, construction, agricultural, medical and other specialised sectors, has restarted production at its newly opened pilot line in Egypt.
The company had stopped operations at the facility earlier this month after the Egyptian authorities declared a month-long state of emergency after scores of people were killed when security forces stormed two protest camps in Cairo. 
Thousands of supporters of deposed President Mohammed Morsi and his Muslim Brotherhood had staged the sit-ins. The state of emergency imposed a curfew in Cairo and several other provinces between 19:00 local time (17:00 GMT) and 06:00.
A spokesperson from Pegas told WTiN that even though there was calm in the area of the new production plant, which is located in the industrial zone near the 6th of October City, approximately 35 kilometres from Cairo, the company made the decision to close for the safety of its employees coming to and from the facility.
However, after security improvements in the country, Pegas has now re-started production at the pilot site, which is estimated to produce 20,000 tonnes of product per year.
First half results
Following the positive news with regards to the re-opening of the Egyptian facility, Pegas has also reported that in the first half of 2013, consolidated revenues (revenues from sales of products) reached €98.1 million, up by 6.3% year-on-year (YOY).
The YOY growth in revenues resulted from a higher polymer price level and increased sales of finished products, particularly in the first quarter of the year.
In the second quarter of this year, the total consolidated revenues were €48.1million, a 0.3% increase compared with the same period last year. The change in the price of polymers had a minimal effect on the YOY comparison.
In the first half of 2013, the share of revenues from sales of nonwoven textiles for the hygiene industry represented an 89%share of total revenues, which is an increase of more than two percentage points, compared with the first half of 2012.
According to Pegas, the high share of products in this category confirms the important position that the company has in this market. In the second quarter of 2013, the share of revenues from sales of nonwoven textiles for the hygiene industry on total revenues was 88.2%, up by 0.9% compared with the same period last year.
“In the second quarter of this year we achieved a YOY EBITDA increase of over 12%. The YOY comparison was positively affected by the development of polymer prices,” said František Řezáč, CEO and member of the Board of Directors of Pegas Nonwovens. “Excluding this impact, the achieved EBITDA fell below our expectations primarily due to lower than planned production results.”
The company considers the successful qualification of the first materials produced at the Egyptian plant, that was completed in very short time, to be very positive, and this success has enabled it to commence commercial deliveries in July.
“Our view of the Egyptian investment remains unchanged and we remain convinced that from the long-term perspective, this region presents interesting opportunities for growth,” said Řezáč. “Taking into account the heightened tensions of the past several weeks, the contribution of Egyptian plant represents the greatest unknown variable with respect to the outlook for the financial results in the second half of 2013.”
