Egypt's turmoil forces Pegas to halt Cairo plant

Richard Higgs

Published: August 20, 2013 1:17 pm ET
Updated: August 20, 2013 1:19 pm ET

Related to this story

Topics Africa

Czech Republic nonwovens producer Pegas Nonwovens SA announced it has suspended trial production at a new 60 million euro plant near Cairo, Egypt in the face of the country's mounting political turmoil.

The company, which completed the plant start up process last month, says it has suspended operations at the facility 35 kilometers from the Egyptian capital as a security precaution aimed at safeguarding its workforce.

"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," said Pegas Nonwovens director František Řezáč, in a statement.

Resumption of production will depend on developments in the Egyptian crisis, he added. "We can only hope that the situation will stabilize in the near future and that the country will return to normal," said Řezáč.

In July this year, Pegas announced that it had successfully supplied the Egyptian facility's first output of some materials to customers.

The Pegas director stressed that the temporary shutdown of the new facility at the trials stage will not significantly affect this year's overall planned output. Phase one of the unit comprises a 20,000 metric ton per year production line, which was due to be commissioned by the end of this year.

Pegas Nonwovens, headquartered in Luxembourg and with two Czech plants at Znojmo and Bucovice, said that it will make a further announcement should the Egyptian closure be longer term and delay the planned commercial launch.

In 2011, prior to the construction of the new plant, Pegas announced it had taken out an insurance contract with the Czech state owned Export Guarantee and Insurance Corporation to cover risks related to the project. The policy includes cover of the investment against "the risk of transfer of returns, expropriation or politically motivated violent damage."


Egypt's turmoil forces Pegas to halt Cairo plant

Richard Higgs

Published: August 20, 2013 1:17 pm ET
Updated: August 20, 2013 1:19 pm ET

Post Your Comments

Back to story

More stories


Sidel sees potential for PET in Africa

April 8, 2014 8:24 am ET

Liquid packaging specialist, Sidel Group, is targeting Africa's beverage market — a territory that the company believes is ripe for growth.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events