In 2017, Teraplast Group will invest EUR11 million in Serbia, with EUR2.7 million going into development and EUR4 million into working capital.
Interlemind has a production capacity similar to that of TeraSteel subsidiary, namely 2.2 million square meters per year, and the same machines respectively. Serbia’s sandwich panel factory will mainly serve countries such as Serbia, Bulgaria, Macedonia, Bosnia, Croatia and Montenegro, as well as secondary markets such as Hungary, southern Romania and northern Greece.
According to company estimates, these markets have a potential of 9.6 million sqm in 2017, or about EUR153 million. Serbia’s panel market is estimated at 2.3 million sqm, of which 20% is covered by local production and the difference is covered by imports. By comparison, in Romania, the local production accounts for nearly 80% of the total market and the company has nine factories of thermal insulating panels. TeraSteel sells over 33% of its production in Romania on foreign markets, the company said in a statement.
“The acquisition is part of Teraplast Group’s strategy to increase sales and profitability. TeraSteel has been exporting to Serbia, Bulgaria, Montenegro and Slovenia for about two years, and the Leskovac plant will help to exponentially increase sales in the Balkans area. We are convinced the Teraplast Group can become an example for Romanian companies that have not dared or have not been encouraged to open factories on foreign markets. Instead, firms in Poland, Russia or Hungary have opened factories in Romania and are very active in the constructions sector. With the two acquisitions this year, Teraplast Group will be able to consume in 2018 the production capacity of an average combine, namely, more than 70,000 of the board, worth over EUR55 million,” said Dorel Goia, Chairman of Teraplast’s Board of Directors.
Teraplast groups includes the company Teraplast, the TeraSteel subsidiary (the new name of Plastsistem starting January 2017), the TeraGlass subsidiary (starting April 2015; previously, the activity of TeraGlass was organized as a business line of the company Teraplast), the Teraplast Logistic subsidiary (starting June 2016) and Politub (an entity jointly controlled as association in participation).
For 2017, Teraplast Group targets a turnover of RON434.6 million, a net profit of RON38.1 million and earnings before interest, taxes, depreciation, and amortization (EBITDA) of RON63.3 million. In the first three months of 2017, Teraplast Group registered a turnover of RON66.5 million, a net profit of RON1.6 million and EBITDA of RON6.6 million.