TeraPlast Group announces the submission of a project for co-financing through state aid for a new investment worth EUR 10,8 million in total, aimed at the production of stretch films.
The project has been submitted within the state aid to stimulate the investments with a major impact on the economy. The state aid may cover 49% of the total volume of the investment, and the beneficiary undertakes to contribute to the public budget with an amount at least equal to the state aid received within five years from the commissioning of the project.
The EUR 10,8 million investment of TeraPlast Group will materialize in a factory with two industrial polyethylene films production lines used mainly to pack the palletized goods.
The equipment considered in this project have a high degree of robotics and automation, the maximum existing in the industry at this time, according to the company.
The new lines will be installed within the Industrial Park in Saratel, and the production capacity will reach over 14.000 tons annually. At maturity, the investment will generate a turnover of EUR 28 million and an EBITDA of EUR 4 million.
„We have a good history of implemented investments that were co-financed by state aid. The projects have been completed, are viable, generate activity, jobs, and revenue to the budget. All the principles that represent the reason to their existence are checked. It is a support scheme not only useful, but necessary for the Romanian companies that wish to expand, to diversify their activity. The state’s support is essential to increase internal competitiveness, the relevance in the region and to reduce the trade deficit,” says Ioana Birta, CFO of TeraPlast Group.
The project is part of the Group’s integrated strategy of accelerated growth on the flexible packaging market, resulted in both M&A operations and the development of new production capacities.
The Group is comprised of the companies TeraPlast, TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast. TeraPlast SA – the parent-company of the TeraPlast Group – is listed on the Bucharest Stock Exchange under the TRP symbol.