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Pegas halts trial on Egyptian line amidst political unrest

Concerns over employee safety sited as motivator.

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By: Karen McIntyre

Editor, Nonwovens Industry

In light of the escalating violence gripping Egypt, Pegas Nonwovens has suspended trial production on its Egyptian production line. Even though the environment near the line, which is located in 35 kilometers from Cairo, remains calm, Pegas has suspended operation over concerns for its employees’ safety.

“With respect to the escalating tensions in the country, the transport of workers to the production plant presented an unnecessary level of risk, that we do not wish to undertake,” says CEO Frantisek Rezac. “The date for resuming operation of the production line will depend on further developments of the Egyptian crisis. We can only hope that the situation will stabilize in the near future and that the country will return to normal.”

Because the line is in trial operations, the shutdown should not impact the year’s planned production estimates. Full start-up of the line is planned fo the fourth quarter. The Egyptian line, announced in 2011, is the first foreign investment made by the Czech Republic-based Pegas.

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