Plastic packaging producer Romcarbon to invest EUR 6.5 mln in new production lines

Romanian plastic packaging producer Romcarbon Buzau will make two investments worth a total of EUR 6.5 million this year. One will be for a production line for plastic trays for food packaging and the other will be for plastics recycling, the company’s representatives announced. Some EUR 4 million will be invested in equipment for selecting, washing and processing plastic waste, especially polypropylene and polyethylene. Romcarbon’s vision is to become the largest plastic waste processor and producer of secondary raw materials in South-Eastern Europe, according to company representatives. The new line will process more than 30,000 tons of plastic waste each year. The second investment, worth EUR 2.5 million, will be for the production of food trays from recycled plastic and will be functional by the end of this year. Its production capacity will be 8,000 tons a year, with a local demand of some 5,000 tons. This means that some of its production will be exported. The company will finance EUR 2.25 million of these investments from its own funds, while the rest will come from bank loans. The two investments add to some EUR 8.5 million which the company invested in 2012 in a new factory. Romcarbon is controlled by Taiwanese investors and last year had a EUR 32 million turnover and a EUR 82,000 net profit. The company is listed on the Bucharest Stock Exchange (BVB) where its shares trade with the ticker ROCE. Its market capitalization is EUR 5.2 million, while the share price was down 5 percent in the last 12 months. Andrei Chirileasa, andrei@romania-insider.com