The project is worth almost EUR12 million in total, out of which state aid amounts to approximately EUR5.8 million.
The company aims to build a new production facility for the manufacturing of biodegradable packaging.
“The financing agreement we received is further proof that the state supports the development of the Romanian companies. Besides the 93 new jobs we will create we will offer Romanian products on a market where 46% of the total consumption comes from imports,” said Alexandru Stanean, TeraPlast CEO.
The investment project implies both the acquisition of state-of-the-art equipment as well as new constructions. TeraPlast will make biodegradable bags with 90% biodegradation degree that will be compostable.
This is the second project for which TeraPlast Group receives state aid agreement in 2020 and has a third project under evaluation.
TeraPlast Group is currently implementing investment projects worth over EUR32 million, which it estimates will generate an EBITDA of EUR8.5 million at maturity.
For 2020, TeraPlast Group estimates a consolidated turnover of EUR225 million, 12% higher than in 2019. Its Plastics division will register a net profit four times higher than in 2019, reaching EUR9 million in 2020.