TeraPlast Group announces new investment project worth 12 million Euro, targets the biodegradable bags segment
TeraPlast Group, the largest Romanian construction materials manufacturer, through its subsidiary, TeraPlast Folii Biodegradabile SRL, submitted an investment project within the state aid scheme aiming to stimulate the investments with a high impact in the economy. The project is worth 11,8 million Euro and is named „The establishment of a new production unit for TeraPlast Folii Biodegradabile SRL”. The state aid value is 5,8 million Euro and represents 49 percent of the total investment.
“The packaging market we will address to reached EUR 293 million in value in 2019. The biodegradable bags segment which is the subject of this investment represents 22 percent of the total market and has the fastest growth rate. The local production cannot properly address the demand, thus 46 percent of the total consumption in Romania at this moment is entirely imported from Germany and Italy. By this project we enter a new market, in its early stages, we are contributing to reducing the trade deficit that reached EUR 17,28 billion in 2019 and to Romania’s compliance with the obligations it has in the European context. The demand in the market will continue to rise because by 2030 all plastic packaging in the EU has to be reusable and easily recyclable” stated Alexandru Stânean, TeraPlast CEO.
The investment project implies both the acquisition of state-of-the-art equipment as well as new constructions. The biodegradable bags that the company of the TeraPlast Group will manufacture will have a biodegradation degree of 90 percent and will be “OK Compost” certified as of SR EN 13432. The technical workflow will also include recycling equipment for the waste resulted in the production process and the re-entry of it into production flows. The implementation of the project starts in November 2020 and the estimated time of completion is 25 months. Following the project, 93 new jobs will be created.
At the beginning of October, TeraPlast submitted the first investment project within the state aid scheme for expanding the production capacity of the Installation business line. The total value of the project is 7.9 million Euro. In the first nine months of 2020, TeraPlast Group registered a 14 percent increase in turnover, up to 167.4 million Euro and a 46 percent increase in EBITDA, up to 20.3 million Euro, compared to the first nine months of 2019.