Avgol Nonwoven Industries Ltd. (TASE:AVGL) has signed a technology cooperation agreement with Elmarco sro, a Czech company that develops equipment for nanometer fibers. The two companies will establish a pilot facility for the production of nonwoven fabrics that Avgol will manufacture using Elmarco's proprietary technology.
Avgol will bear the €1.2 million development cost, depending on agreed upon milestones. The companies estimate that the pilot program will take a year.
Avgol believes that the technology will create nonwoven fabrics with functional features, such as resistance to liquids, solids, and bacteria, while preserving air permeability of the cloth. The fabric will replace and lower the price of many components in the diaper and hygienic products industry for medical and protective clothing, as well as other uses.
Avgol said that it will mainly target the fabric to its current customers, but notes that the fabric creates a new market as well as replacing current products.
Avgol fell 0.6% in morning trading today to NIS 1.12.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2008
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