Pegas Nonwovens has announced that work has commenced on the construction of its brand new production facility in Znojm, PÅ™ímÄ›tice, Czech Republic.

The Luxembourg headquartered company announced in March this year that was investing in further production capacity and had already contracted with Reifenhäuser Reicofil for the supply of further spunbonding technology.

The EUR 50 million investment in the new 9th production line is being carried out through Pegas’ subsidiary Pegas - NS a.s.

 “The project for the construction of new production facility is running according to plan and by concluding the contract for the supply of building works we have taken another significant step towards its final completion,” said František Řezáč, member of the board of Pegas Nonwovens SA and CEO of Pegas Nonwovens s.r.o.

The new PÅ™ímÄ›tice facility will house the Reicofil 4 type production line which will produce materials mainly for the hygiene segment with the option of production for other applications.

Pegas says the new production line will enable the expansion of the company's annual production capacity by up to 20 thousand tonnes, depending on the products manufactured. The company expects to launch the new line in the second half of 2011.

Pegas announced that the general contractor of the building works is PSG – International a.s., a leading company in the construction industry in the Czech Republic and abroad.