The company bought production lines from a German manufacturer.
Avgol Nonwoven Industries Ltd. (TASE:AVGL) today announced three deals with a German production lines manufacturer for the purpose of expanding Avgol's operations in the US and China, for a total of $56 million. The investment is subject to obtaining financing from a German bank, backed by Euler Hermes, or from an alternative source.
Avgol bought a new production line for Chinese joint venture, Hubei Gold Dragon Nonwoven Fabric Co. Ltd. The production line will have a production capacity of 15,000 tons of nonwoven fabrics a year, and is due to come on line in 2010.
Avgol America Inc. will upgrade two nonwoven fabric production lines to boost production by 3,500 tons a year. The equipment is slated for delivery by early in the second quarter of 2009 at the latest.
Avgol will also increase its holding in Hubei Gold Dragon from 50% to 70% for $11 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2008
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