TeraPlast Group, the largest Romanian manufacturer of construction materials, has submitted a new investment project under the state aid scheme to stimulate investments with a major impact on the economy.

The investment project has a total value of EUR 11.8 million and will be carried by the group's subsidiary TeraPlast Folii Biodegradabile.

The requested state aid is about EUR 5.8 mln and accounts for 49% of the total investment. The packaging market addressed by the project is estimated at EUR 293 mln.

The segment of biodegradable bags targeted by this investment accounts for 22% of the total and registers the fastest growth rate.

The local production cannot cover the demand, and approximately 46% of the total consumption in Romania comes from imports, TeraPlast argues.

The granules for biodegradable films that the company wants to produce are currently imported from Germany and Italy.

Earlier in October, TeraPlast asked for another state aid worth almost EUR 4 mln to finance an investment project of EUR 7.9 mln to expand the production capacity of its Installations business line, which includes the portfolio of pipes and fittings.

TeraPlast is listed on the Bucharest Stock Exchange and has a capitalization of RON 750 mln (EUR 158 mln).

In the first nine months of 2020, TeraPlast Group registered a 14% increase in turnover, to EUR 167.4 mln, and a 46% increase in EBITDA, up to EUR 20.3 mln, compared to the first nine months of 2019.

(Photo courtesy of the company)

andrei@romania-insider.com