REI Grup builds EUR 2.5 mln paper packaging factory in central Romania

REI, a Romanian group of consulting companies specializing in attracting non-reimbursable funding, has started the construction of its first production facility, a modern paper packaging factory in Călan, Hunedoara County.

The project, carried out through REI International Consulting, involves the construction of a kraft paper bag factory in Călan. The total investment amounts to more than EUR 2.5 million, of which 61.98% is covered by non-reimbursable funding obtained through the Regional Development and Just Transition Programme.

REI Grup is taking its first step into manufacturing, diversifying its business by adding ecological, biodegradable, recyclable and high-quality packaging to its portfolio.

"The decision to invest in this new production line follows a detailed analysis of the Romanian paper packaging market and our country's strategic position in Europe. Romania has significant potential to serve both domestic and export markets, where demand has grown even faster in recent years. We are glad that we managed to identify the financing sources, combining investment credit with non-reimbursable funding obtained through the Sustainable Development and Just Transition Programme. We are confident that we will complete construction of the factory on schedule and start production for our future customers," said Roxana Mircea, managing partner of REI Grup.

Construction of the new production facility began in the second half of this year, with completion scheduled for the first half of next year.

In January 2019, the sale of certain plastic bags was prohibited under Law No. 87/2018, which amended Law No. 249/2015 on packaging management. The legislation requires economic operators to introduce reusable and recyclable packaging, while exempting such packaging from the tax applied to plastic packaging.

The bags manufactured in Călan will be intended mainly for customers in the e-commerce sector, which accounts for about 24% of packaging demand, but also for other key industries such as the food industry, fashion and retail, and cosmetics and pharmacies.