TeraPlast submitted the investment project through its subsidiary TeraPlast Folii Biodegradabile SRL and aims to build a new production facility for the manufacturing of biodegradable packaging.
“The packaging market we will address reached EUR293 million in 2019. The biodegradable bags segment which is the subject of this investment represents 22% of the total market and has the fastest growth rate. Local production cannot properly cover and 46% of the total consumption in Romania at this time is entirely imported from Germany and Italy. With this project we enter a new market, in its early stages, we are contributing to reducing the trade deficit that reached EUR17.28 billion in 2019 and to Romania’s compliance with EU obligations. Market demand will continue to rise because by 2030 all plastic packaging in the EU has to be reusable and easily recyclable,” 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.
The technical workflow will also include recycling equipment for the waste resulted in the production process and the re-entry of it into production flows. The implementation of the project starts in November 2020 and the estimated time of completion is 25 months. The company said the new project would create 93 new jobs.
At the beginning of October, TeraPlast submitted the first investment project within the state aid scheme for expanding the production capacity of its Installation business line. The total value of the project is EUR7.9 million.
In the first nine months of 2020, TeraPlast Group registered a 14% annual increase in turnover, to EUR167.4 million and a 46% increase in EBITDA, to EUR20.3 million.