TeraPlast gets EUR 5.8 mln state aid for building biodegradable products plant
Romanian industrial group TeraPlast announced that its application for a EUR 5.8 million state aid aimed at partly financing a EUR 12 mln investment project, filed by its division TeraPlast Folii Biodegradabile, has been approved.
Within the project, the group will buy state-of-the-art equipment and build a new factory. The project also takes into account a responsible production flow. Thus, the technological process includes equipment for recycling the waste resulted from the own production for the reintegration in the manufacturing workflow. The bags and sacks manufactured by TeraPlast Folii Biodegradabile will be at least 90% biodegradable.
This project is the second project for which TeraPlast Group received the financing agreement in 2020. The first submitted project implies expanding the existing production capacities of the Installation business line by up to 50%. It has a total value of EUR 7,9 million and received the financing agreement in the first half of November.
For the third project that implies establishing a new production unit for polyethylene systems, the group is still waiting for the financing agreement. The Ministry of Finance is still evaluating the project.
TeraPlast Group has ongoing investment projects worth over EUR 32 million, which will generate an EBITDA of EUR 8.5 million at maturity, according to the group's estimates. These projects aim to develop the Plastics division and diversifying the group's business portfolio.
For 2020, TeraPlast Group estimates a consolidated turnover of EUR 225 million, 12% higher than in 2019. The group's Plastics division will register a net profit of EUR 9 million in 2020, four times higher than in 2019.
(Photo source: the company)