“We have decided to focus on the compostable packaging, an eco-friendly solution. We expect to reach revenue of EUR16 million”, Alexandru Stanean, general manager of TeraPlast Group, told a videoconference.
TeraPlast Group also has, among its divisions, a recycling company, but, in order to operate, it must resort to imports, considering that recycling is deficient, on the local market.
Stanean expects TeraPlast to recycle 39,000 tons of PVC (polyvinyl chloride) by the end of 2021, which means 15% of the production of a plant, but, unfortunately, it is based on imported resources.
In 2020, TeraPlast Group’s plastics business neared RON400 million, representing an increase of 16% in turnover. Meeting demand entailed a higher consumption of raw materials and raw material costs reached nearly RON240 million, on a group level, in 2020. The group fully imports basic raw materials because there are no domestic producers to meet the need.
TeraPlast exceeded the RON1 billion turnover threshold and its net profit doubled to RON79 million in 2020.
End-February 2021, TeraPlast Group announced the closing 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 shall be re-dimensioned and continues its activity through TeraPlast, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradabile and Somplast, with a strong focus on the plastics products, a field with great growth potential.