TeraPlast Group, the largest Romanian manufacturer of construction materials, continues to develop and diversify its business portfolio. In this sense, the company is preparing extensive investments of over 20 million euro. To achieve this, TeraPlast intends to submit state aid projects under the State Aid Scheme to stimulate investments with a major impact on the economy. Of the total value of investments, about 52% is own contribution.
“Romania needs tools to reduce its dependence on imports. It is a pity to continue to import products that we can manufacture in Romania. Companies that want to invest in key areas deserve encouragement and support. We have already proved, with the investments made last year with state aid, that we can reduce imports and contribute to balancing the trade balance. We are waiting for the launch of the program so that we can submit projects. We rely on the support and trust of the state in local companies,” said Alexandru Stânean, CEO of TeraPlast.
The projects prepared by TeraPlast aim at expanding the production capacity of the installations and granules business lines, following which it will introduce on the Romanian market a new range of granules for biodegradable foils as well as an extension of the portfolio of pipes and fittings.
For these product ranges, more than 90% of the Romanian market represents imports. Also within the project, the company will expand its production capacity for fittings and multilayer PVC pipes for external sewers and intends to access new markets.
In 2018, the TeraPlast Group received financing agreements through the state aid scheme for three investment projects in Wetterbest, TeraPlast and TeraGlass. The total value of investments was over 13 million euros in expanding production capacity. For the three projects, the group received a total of about 6.2 million euro in state aid.
In the first half of 2020, the TeraPlast Group had a turnover of 100.8 million euro, up 17% compared to the first half of 2019. During the same period, the Group’s profitability increased by 49%, with EBITDA reaching 11 million euro.