The company will use the funds in a greenfield investment for a new production facility for the manufacturing of biodegradable packaging. TeraPlast will make biodegradable bags with 90% biodegradation degree that will be compostable.
The project is worth almost EUR12 million in total and benefits from state aid amounting to approximately EUR5.8 million.
The financing package will be disbursed in two tranches: EUR6.9 million for a period of up to seven years and EUR5.8 million as bride financing for the state aid amount.
For this specific investment, TeraPlast Group set up a new company, TeraBio Pack SRL, and the factory will be operational in the third quarter of 2021. The new facility will produce biodegradable packaging for the local market and other European markets.
TeraPlast Group is currently implementing investments of EUR32 million, some of which are co-financed by state aid.