The construction of the new factory will start in 2022 in the industrial park at Saratel. The facility will have two production lines for polyethylene films for industrial use, which represents a capacity of over 14,000 tons per year. The state-of-the-art equipment has a high degree of robotization and automation of the production flow.
At maturity, the investment will generate a turnover of EUR28 million and an EBITDA of EUR4 million, corresponding to a margin of 14%, similar to that of other segments within the Group.
The incentive mechanism for investments with great impact on the economy entails a state aid of 50% of the total eligible expenditure of the project. Through this facility, the beneficiary undertakes to contribute to the consolidated general budget at least equal to the amount of the state aid received, within five years since the completion of the investment.
For the optimal implementation of the investment, TeraPlast Group will access financing from Raiffeisen Bank. It is a model successfully used in the past, which allows a balanced allocation of resources and an adequate level of indebtedness.
Over the last three years, TeraPlast Group has carried out investments of EUR44.4 million co-funded through the state aid scheme.
The stretch film market in Romania is estimated at about 30 thousand tons per year, and the production capacity to be developed by TeraPlast will radically change the domestic supply, by reducing the need for imports. The group aims to reach a market share of approximately 45% of the stretch film market by the end of 2025, by developing its own capacities and through M&A (mergers and acquisitions) operations.