announces that on October 5, 2011 it entered into an insurance contract with the Export Guarantee and Insurance Corporation (hereafter "EGAP") for the coverage of risks connected with its investment in Egypt. The insurance contract includes insurance of the investment against the risk of prevention of the transfer of returns, expropriation or politically motivated violent damage.
EGAP is 100% owned by the Czech Republic and its primary purpose is the support of exports and the provision of insurance services to exporters of Czech products, services and investments.
"Within the scope of the construction of the new production plant in Egypt we are also paying considerable attention to the elimination of potential risk factors. Apart from the insurance of assets and trade receivables, which we commonly use in the Czech Republic, we have taken the decision to also insure the Egyptian investment against risks connected to unexpected political events. In this way we want to secure the protection of the Company's interests and assets to the highest possible degree", said František Řezáč, CEO of PEGAS NONWOVENS s.r.o and member of the Board of Directors of PEGAS NONWOVENS SA.
During the signing of the insurance contract Chairman of the Board of Directors and CEO of EGAP, Ing. Karel Pleva valued the quality preparation of the investment and stressed that despite the current political situation Egypt is a promising market with considerable growth potential that offers Czech exporters attractive opportunities. “PEGAS took advantage of an opportunity and we are happy to have been able to contribute with our share”, said Ing. Pleva.
(Source: Nonwovens)