The new division will produce raw material from partially renewable resources, which is intended for making compostable packaging.
The investment is part of the project “Decarbonization of the local economy through bio-based products” and is worth over EUR1.65 million. The project is developed in partnership with Norwegian company BioBag.
The grant was provided via the 2014-2021 EEA and Norway Grants, within the program “The increase of SMEs in Romania.”
This is the second grant for Promateris, funded via this investment scheme, after it had obtained EUR950,000 in 2019 for the production of packaging from renewable materials.
The new division of Bio Compounds will start in 2022 the production of BioMateris, a raw material used in the production of compostable packaging. This can be used to develop products intended for the following industries: agriculture (mulch foil), retail and HoReCa (food packaging), bio-waste management (garbage bags).
Promateris ended 2020 with consolidated sales of RON116.1 million, up 39% from 2019, an evolution largely influenced by the production of biodegradable and compostable packaging.
The company aims to become leader of the sustainable packaging market in Eastern Europe and to reach a turnover of RON250 million, with an EBITDA envisioned at RON35 million, until 2025.