In 2021, the company is implementing investments of over EUR32 million, per information provided by the company. Based on these investments, TeraPlast expects to reach an EBITDA of RON130 million in two years.
“The rapid implementation and the short ramp-up period represent challengers for which we are prepared. The proof is that we have already put some equipment into operation, as part of these investments, with some other equipment to be delivered in the coming period.”
TeraPlast is currently engrossed in three major investment projects whose implementation started in the last quarter of 2020. The first project, which entails the expansion of production capacity for PVC-based pipes and fittings, amounts to EUR7.9 million, and the second project, aimed at building and equipping a new factory for polyethylene products for water, irrigations and natural gas, reaches EUR9.8 million and the third project. The two projects boost the production capacity of the installations business line by 50%. The third project is part of the company’s strategy to become leader on the flexible packaging market. It targets a new factory for the production of biodegradable foils and stands at EUR11.8 million”.
TeraPlast Group, which, apart from TeraPlast SA, also includes other companies, exceeded the RON1 billion turnover threshold in 2020, while its net profit doubled on the year to RON79 million in 2020.
End-February 2021, TeraPlast Group announced the completion of the transaction for the sale of the steel products division to Kingspan Group. On February 26, the shares of TeraPlast in TeraSteel Romania and Serbia, respectively Wetterbest, were transferred to Kingspan, at which point the transaction price of RON373 million was paid, per a stock market report.
Following the sale, TeraPlast Group was re-dimensioned and continues its activity through TeraPlast, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradabile and Somplast, a plastic packaging producer acquired by TeraPlast at the end of 2020.