Avgol Nonwoven Industries Ltd. (TASE:AVGL) has bought two more production lines for nonwoven fabrics for $80 million. The productions lines will enable the company to boost production by up to 30,000 tons of finished products a year.
Avgol's current production at its plants in the North Carolina, Israel, China, and Russia is 110,000 tons of nonwoven fabrics a year.
Avgol will install one production line at its factory in the US, and will decide on the location of the second production line later one. Both lines are due to begin production during the first half of 2012.
Avgol CEO Shlomo Liran said, "We see a great opportunity in our target markets, and decided to purchase more production lines in order to optimally meet current demand. This strategic decision is in response to the ongoing increase in purchases and vote of confidence in Avgol and its production lines by our large customers worldwide."
Avgol's share price rose 1.4% by early afternoon to NIS 2.40, giving a market cap of NIS 706 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 28, 2010
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