Romanian industrial group to build EUR 10 mln plastic utility vaults factory
TeraPlast Group (TRP), the largest Romanian producer of construction materials, plans to build a new factory within its industrial park in Bistrita-Nasaud county, in the northern part of the country.
Andrei Chirileasa · Journalist
· Updated · 2 min read
TeraPlast Group (TRP), the largest Romanian producer of construction materials, plans to build a new factory within its industrial park in Bistrita-Nasaud county, in the northern part of the country.
The investment is EUR 9.8 million, and the company has filed for EUR 4.9 million state aid to finance it.
TeraPlast plans to complete this project in February 2022 and estimates the new factory will create 80 new jobs.
The unit will manufacture plastic vaults for water, irrigation, and gas networks.
This is one of the three major investment projects TeraPlast has in the pipeline, with a total budget of some EUR 32 mln - half of which the group expects to be financed from state grants. The three projects should generate EBITDA of EUR 8.6 mln (per year) according to the company's projections.
"We want these projects to largely offset the sale of the Steel division, which last year contributed EUR 11 mln to the group's consolidated EBITDA. [On the other hand], we produce in Romania and contribute to shrinking the trade gap. We will create new jobs, and we will respond better to the market demand," said Alexandru Stanean, CEO of TeraPlast.
The group recently received a favorable answer from the state for a EUR 3.9 million state aid for its first investment project submitted for financing under the scheme designed to stimulate investments with a major impact on the economy. The EUR 7.9 million total investment aims to expand the production capacity of the group's Installations business line.
At the beginning of November, TeraPlast submitted another investment project worth EUR 11.8 mln for a biodegradable plastic bags factory.
The group recorded a turnover of EUR 176.6 mln in the first nine months of this year, up by 14% compared to the same period of 2019. The EBITDA went up 46% to EUR 20.3 mln, and the net profit was EUR 12.4 mln. TeraPlast Group has a market capitalization of EUR 146 mln after its shares went up by 87% this year.
(Photo courtesy of the company)
