Pegas asked for investment incentives for its 9th production line which should be build in Primetice close to regional city Znojmo, Czech Republic. The total incentives could reach up to 30% of estimated CAPEX, which could be similar to 8th line (EUR 40m). In general investors can get incentives if the total investment exceed CZK 100m (EUR 3.5m).
The 8th production line, scheduled to be put to operation in October 2007, should increase total production by 28%. New 9th line should have about same capacity and the commercial production could start in 20 to 24 months from the launch of the project. We see the news as neutral.