TeraPlast Group received the financing agreement for the investment project worth EUR 7,9 million
Bistrița, 12.11.2020
TeraPlast Group, the largest Romanian construction materials producer, received on Wednesday, November 11, 2020, the financing agreement for the first project submitted within the state aid scheme in 2020. The project, named „Increasing TeraPlast SA’s competitivity by the acquisition of high-performance equipment and new constructions”, aims at expanding the production capacity of the Installation business line. The total value of the submitted project is EUR 7,9 million out of which EUR 3,9 million represents the approved state aid.
„The Ministry of Finance understood the importance of supporting the projects that eliminate the imports and equilibrate the trade balance. The program announced by the Government provides funds for infrastructure works, thus we will be working at a fast pace for another 15 years. However, if the Romanian producers do not invest in increasing their production capacities, instead of eliminating the imports, they will be rising. By this investment, besides the infrastructure market, TeraPlast will also address other segments of the installation sector where at present 90% of the products are being imported.” stated Mr. Ovidiu Gurău, TeraPlast’s commercial director.
This project is the first of the over EUR 20 million worth of investment projects announced by TeraPlast Group in September 2020. The implementation of the project started after the submission of the project and its completion is estimated for April 2022. The investment will create 45 new jobs.
TeraPlast Group has another investment project submitted within the state aid scheme for which it expects the financing agreement. The project aims at producing biodegradable packaging through its subsidiary TeraPlast Folii Biodegradabile SRL. The total value of the project is EUR 11,8 million, out of which EUR 5,8 million represents the state aid requested.
About TeraPlast Group
With a tradition of 125 years, the TeraPlast Group is presently the largest Romanian construction materials manufacturer. The Group is comprised of the following companies: TeraPlast, TeraSteel Romania & Serbia, Wetterbest, TeraGlass, TeraPlast Recycling and TeraPlast Hungary.
Starting July 2nd, 2008, the largest company of the Group – TeraPlast SA – is listed on the Bucharest Stock Echange under the TRP symbol. TeraPlast’s shares are included in the BSE reference index, BET, and since the third quarter of 2020 in FTSE Russell’s Total Cap and MicroCap indices.
Within the Vektor evaluation based on 15 criteria for investor relations communication, conducted by ARIR, TeraPlast received the highest mark: 10.
