Non Woven Fabrics

Avgol to add third Chinese production line

Avgol Nonwoven Industries Ltd. (TASE: AVGL ), which manufactures nonwoven fabrics for diapers and the hygiene industry, has decided to add a third production line in China, which will raise Avgol's production capacity in China by 65% to 40,000 tons. According to company estimates, the new production line will commence operations in the first half of 2012.

Avgol's board of directors approved the company's entry into an agreement with Avgol's Chinese partner, Hubei Gold Dragon, under which Avgol will invest in an additional production line to manufacture non-woven fabrics, to be located in the partnership's Chinese factory, after reaching an understanding that this site has high potential to contribute to company revenue.

This line is part of an effort to expand production capacity through the purchase of two new production lines in the US and China for an investment of $80 million, which Avgol reported eight months ago. This expansion will raise Avgol's production capacity by 30%, or 30,000 tons of finished products a year, so that overall company production of finished products will reach 140,000 tons a year. This expansion will allow the company to meet increased demand of company products.

The cost of the additional Chinese production line will be financed mainly by investment in equity from the Chinese partnership, bank financing, and/or with a shareholders' loan. The investment required to set up the new Chinese production line includes an investment of between $10.2 million and $12.4 million by Avgol in the Chinese partnership equity, as well as a $1.1 million investment by the Chinese partner in the partnership equity. The Chinese partnership will raise the remaining $27 - $30 million of the investment through local bank financing and/or a shareholders' loan.

The investment amount needed to enlarge partnership equity is to be paid within two years from receipt of approval from Chinese authorities, and in accordance with construction progress of the new production line.

Avgol currently operates two production lines in China, which supply 24,000 tons of finished products a year. The second production line began operating in the third quarter of 2010. Following its investments and its the increase in its partnership equity, Avgol's stake in the partnership will rise to 83-84% of partnership equity and the Chinese partner's will hold 16-17%.

Avgol's share price fell 0.14% today to NIS 283.1, giving a market cap of NIS 844 million.

Published by Globes [online], Israel business news - www.globes-online.

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Avgol to add third Chinese production line

Avgol Nonwoven Industries Ltd. (TASE:AVGL), which manufactures nonwoven fabrics for diapers and the hygiene industry, has decided to add a third production line in China, which will raise Avgol's production capacity in China by 65% to 40000 tons.



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147 - | Oskar Jewelry

Non woven bags are a brief name of polypropylene Nonwoven bags. PP nonwoven bags are the most frequent and simple way to pack things in order to carry somewhere without any fair of weather dilemma. PP nonwoven bags are produced form a really particular varieties of fabrics, nonwoven fabrics. These sorts of nonwoven bag industry have a growing market place in the modern day age. These varieties of fabrics are growing because it has a excellent demand by the public due to its facilities supplied to the public and peoples. Nonwoven bags are almost getting employed in each country and virtually every field of life. Nonwoven bag industry has a fantastic growing ratio. Polypropylene is various from other varieties of fabrics like cotton is a naturally growing fabric, in cotton long and durable strands of thin cotton are arranged in an particular manner to like a basket. These kinds of fabrics are called woven fabrics. Now coming on Non woven fabrics, when on some kinds of fabrics labeled as non woven so it means then it indicates these fabrics are not in an manner like cotton so are various from naturally produced fabrics.Non woven bags are mostly in developed countries and also become employed in developed countries but they are not identical in the report. As a non-woven bags are much cheaper and less wait, but they are still expensive, and polyethylene and other varieties such materials. Supplies nonwovens are little bit expensive, but are environmentally friendly and easy to dispose.

PP non-woven bags are recyclable and reusable, so they are environmentally friendly and most commonly used in developed countries. These bags are never perfectly be made with all fresh raw supplies but there is often a particular percentage of utilised materials in Nonwoven bags. In creating countries non woven bags are producing their market god simply because they have excellent qualities to attract consumers and shop keepers to enhance outlook of their goods. These bags are produced from non woven fabrics and non woven fabrics are extremely frequent to use in some fields also. These types of bags are also utilized in the medical field due to its simple to dispose facility and are also utilized in the day-to-day household products and in everyday utilised points like disposable towels and other disposable things like cups, plates etc. These fabrics are also utilised in the production of many sorts of foot wear and also used in some sorts of clothes also. Hats and caps are most widespread issues that are being made by these fabrics employed in dressings.


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