“Romania needs tools to reduce its dependence on imports. It is a pity to continue to import products that we can manufacture in Romania. The companies that want to invest in key areas deserve to be encouraged and supported. By the investments made last year with state aid we have already shown that we are able to reduce the imports and contribute to equilibrate the trade balance. We are waiting for the launch of the program so we can submit the projects. We rely on the support and trust of the government in domestic companies” stated Mr. Alexandru Stanean, CEO of TeraPlast.
TeraPlast’s projects aim to expand the production capacities of the Installation and Compounds business lines. Thus, the company will introduce on the Romanian market a new range of compounds for biodegradable films, as well as an extension of the pipes and fittings portfolio. For these product range, over 90% of the Romanian market is represented by imports. Also, within these projects, the company will expand its production capacity for fittings and multistratum PVC pipes for exterior sewerage and intends to access new markets, per the company’s announcement.
In 2018, TeraPlast Group received the financing agreements through the state aid scheme for three investment projects at Wetterbest, TeraPlast and TeraGlss. The total value of the investments was over EUR 13 million in expanding their production capacity. For the three projects, the companies received, in total, around EUR 6,2 million in state aid.
In the first half of 2020, TeraPlast Group registered a turnover of EUR100.8 million, up 17% compared to the first half of 2019. In the same period, the Group’s profitability rose by 49%, with EBITDA reaching EUR11 million.
On July 24, 2020, TeraPlast Group concluded an agreement with Kingspan Group for the sale of the Steel division. The transaction concerns the entire participation of TeraPlast SA in Wetterbest and TeraSteel Romania and Serbia. The value of the division is estimated at RON410 million, an amount that could be adjusted with the financial debt of the division at the date of the transfer of ownership, based on an agreed formula.