Romanian industrial group Teraplast gets state funding for solar power plant
Romanian industrial group TeraPlast (BVB: TRP), the largest polymer processor in Central and South-Eastern Europe, will receive RON 5.5 mln (EUR 1.1 mln) from the state's National Recovery and Resilience Plan (PNRR) to develop a new photovoltaic plant at its industrial park in Saratel.
The non-refundable financing will cover about a quarter of the company's total investment in this project, of RON 22.56 mln (EUR 4.56 mln).
The new photovoltaic plant is designed for a power of 4.56 MWp, respectively a power produced (from inverters) of 3.81 MW, and is part of TeraPlast's sustainable development strategy, which also includes increasing energy independence from renewable sources.
"The project for building the photovoltaic capacity is the guarantor of the sustainable development of TeraPlast's business. The future plant will contribute to the reduction of greenhouse gases, respectively, to the estimated annual decrease of greenhouse gases by 3,238 tons of CO2e (CO2 equivalent). Such capacities also contribute to reducing production costs, with a beneficial effect on the group's competitiveness as a whole," said Nicolae Rosu, operational director of TeraPlast.
In the last 5 years, TeraPlast Group has invested almost RON 400 million (EUR 81 mln) to expand production capacities and diversify its business.
In the first six months of this year, Teraplast reported losses of RON 1 mln compared with a net profit of RON 16.4 mln in the same period of 2022, as its sales declined by 14% to RON 320 mln.
The Teraplast shares have lost 15% since the beginning of this year (as of August 29), and the group's capitalization is now RON 1 bln (EUR 205 mln). Starting September 1, Teraplast will be promoted from Small Cap to Mid Cap/Large Cap in the MSCI Frontier and MSCI Romania indices.
(Photo source: Facebook/Teraplast)