"Our new production plant in Egypt, the construction of which is now in its final stage, is located in the industrial zone near the 6th of October City located approximately 35 kilometres from Cairo. The situation at this location is calm and therefore the plant is not under direct threat. Our local employees are continuing in carrying out their work duties related to the commissioning of the production line and at the present time we are not aware of a risk of delay to the ramp up of the production line that is planned for this quarter.
The Company is of course monitoring the developments in Egypt. We are in regular contact with our embassy in Cairo and local institutions. For the event of a further escalation in tensions in the country we have several scenarios prepared, including the provision of increased security for the production technology and possible evacuation of the Czech employees who are managing the ramp up of the production line. We hope, however, that the situation will calm down soon and that we will not need to take such steps", said František Řezáč, CEO and Member of the Board of PEGAS NONWOVENS SA.
The Egyptian investment is insured against the risk of prevention of the transfer of returns, expropriation or politically motivated violent damage at the Export Guarantee and Insurance Corporation.
Source: (519,9 CZK, 0,95%)